Minnesota could cut popular e-bike rebates to $750
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Minnesota's popular e-bike rebates could be capped at $750 and reserved for residents with lower incomes as part of the state budget.
What's happening: Draft language included in a broader transportation funding agreement would make those changes heading into the second and final year of the pilot.
- Plus: Under the bill, the remaining $2.2 million in rebate money would be distributed via lottery, not a first-come, first-served application, if demand again exceeds available cash.
The big picture: The taxpayer-funded pilot, approved by DFL legislators in 2023, hit a speed bump last year when a surge in applications caused the sign-up system to crash.
- Backers of the changes say the tweaks will make the process smoother and allow the program to reach more Minnesotans in its second and final year.
Context: The original law directed the Department of Revenue to cover between 50% and 75% of an e-bike's cost, with rebates capped at $1,500.
- Under the revised language, the state would scrap that sliding scale and instead cut the maximum amount in half.
The fine print: The new income limits would restrict the program to married couples making under $78,000 and singles making $41,000 or less.
- Minnesotans who receive disability benefits would be eligible regardless of their income.
Between the lines: Roughly 40% of the rebates issued last year went to Minnesotans with more than $100,000 in income, according to data the Minnesota Reformer obtained from the state Department of Revenue.
What's next: The transportation bill will get a vote during an upcoming special session to pass the budget, which could happen as soon as this week.
- The second and final wave of rebates should go out later this year.