Ebike tax credit Colorado

[SupremeMetalTree]

Hi, I applied for, received, and purchased an eBike in Colorado in 2023 as the state offered a tax credit issued by the Colorado Department of Energy (If I remember correctly) to purchase an eBike. Do I have to include this amount on my Federal, State, or both tax returns? If I have to include this where do I record it on my tax returns? 

Thanks,

[JotikaT2]

No, you would not report the rebates as income on your federal or state income tax returns.

The ebike rebates issued in 2023 were offered to only select applicants and were based upon median income of only these residents.  These rebates were offered to offset the costs of purchasing an ebike, but did not cover sales tax or result in a refund.  The rebates would reduce the cost basis of the ebike.

The 2023 rebates were only offered in certain cities such as Boulder.  Please see this link for more details on the rebates offered if you were a resident of Boulder who applied and received the rebate.

Only businesses are entitled to any tax credits for the sale of the ebikes within Colorado.  The program will be offered to all residents of Colorado starting April 1, 2024. While the business is entitled to tax credits, individuals would be entitled to a discount to purchase an ebike from participating retailers.

[SupremeMetalTree]

The rebates were offered statewide to my knowledge not just in selected cities such as Boulder. I don't live in Boulder and received the rebate and I looked at other cities as well before purchasing. 

[BillM223]

Are you talking about a "tax credit" or a rebate?

In 2023, for a brief period, there was a state-wide rebate program - see this CPR article.

There was a separate program just for the City of Boulder.

There is a 2024 program (which has closed) that offered a $450 tax credit. In addition, there will be a $500 tax credit that the retail sales entity can claim for each sale of an ebike (again, only for 2024 and beyond).

In short, when you say "tax credit", we don't know which program you are referring to or are you referring to a rebate, which is a different thing in the tax world.

Come back and clarify what you mean.

[SupremeMetalTree]

Hi,

It was a rebate as I looked more closely into an article submitted by another commenter. 

Thanks.