Colorado e-bike tax credits will be reduced by 50 percent in 2026

By: Gabrielle Franklin | KDVR

DENVER (KDVR) — Challenging economic times have hit many this year, including the state of Colorado. A popular program that helped more Coloradans get outside will have you paying more out of pocket next year.

Tax credits for Colorado e-bikes are set to be reduced next year. That action, combined with other economic pressures, has small business owners concerned.

Dan “DJ” Johnson of Cycle Erie said his business has been doing well this year.
“It’s been a strong year for us. Not quite as strong as we hoped but it’s been good,” Johnson said about the year his business has had in 2025.

He worries that uncertainty handed down from both the state and federal government could get in the way of the shop’s success next year. A $450 tax credit for e-bike purchases in Colorado is set to be slashed in half to $225.

“E-bikes themselves are very popular, we all see them everywhere, right? They are all over the place. They speak for themselves but [the credits] have definitely kind of driven that adoption,” Johnson said.

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