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More States Are Offering E-Bike Incentives, But There’s A Massive Problem

Electric bikes have completely changed the way people get around cities. They’re fast, efficient, easy to ride, and way more sustainable than your average car. They flatten hills, turn sweaty commutes into breezy cruises, and open up cycling to folks who might’ve never considered it. Naturally, governments have taken notice.

All over the world, countries are pushing to make e-bikes more affordable. France offers up to €4,000 in subsidies for e-cargo bikes. The Netherlands has long incentivized cycling through tax breaks and employer programs. Closer to home, California’s statewide e-bike rebate program relaunched this year after a rocky start, offering up to $2,000 per rider. Colorado’s universal rebate program is seen as one of the best in the US, open to all residents through 2032.

Now Massachusetts is joining the party. As of this week, the state is offering rebates of up to $1,200 for income-qualified residents to buy an e-bike—plus an extra $150 for gear like a helmet, lights, or a good lock. The program is run by the Massachusetts Clean Energy Center (MassCEC) and aims to roll out 3,000 vouchers in total, starting with 500 spread out across five regions.

The program is aimed at helping lower-income residents, with two levels of discounts. If you make a modest income, you could get up to $800 off an e-bike. If your income is lower, or if you need a specially adapted bike for medical reasons, you could get up to $1,200 off.

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To get in on it, you’ve got to be a Massachusetts resident, meet the income criteria, and buy from a participating local bike shop. That’s key—online mega-retailers are out of the equation. It’s all about supporting local business and making sure buyers have access to service and support.

So far, demand has been wild. Boston’s own rebate program (separate from the state one) already helped sell over $785,000 worth of e-bikes and gear, and many retailers have seen a huge boost from voucher customers. It’s clear that once the financial barrier drops, more people are happy to make the switch.

But just as things are gaining momentum, here comes a massive speed bump: tariffs.

Most e-bikes sold in the US are imported from China. And thanks to federal trade policy, those imports now face tariffs of up to 54%, depending on the product and category. Some models are expected to face an even steeper 100% tariff by 2026. These are real, unavoidable costs—tacked on at the border and passed directly to consumers. According to Cycling Electric, the base cost of an e-bike could jump hundreds of dollars, erasing the exact financial help rebate programs are trying to provide.

It’s not just riders who lose. Small bike shops, especially those already working on thin margins, are hit hard. They either eat the extra cost or risk pricing customers out entirely. And for lower-income buyers—the very people these programs are trying to help—higher prices could put e-bikes right back out of reach.

The logic just doesn’t add up. States are handing out generous incentives to push clean transportation, while the federal government is effectively making those same products more expensive. What’s the point of offering a $1,200 discount if tariffs hike the price by the same amount? That’s not a win—that’s a wash.

Supporters of the tariffs argue they’re about boosting domestic manufacturing and being tough on China. And sure, building more e-bikes in the US would be great. But in the short term, we need to deal with the reality that most affordable, good-quality e-bikes come from abroad. 

And the fact simply is that you can’t punish working families in the name of long-term industrial goals.

So here’s the big question: If we agree that e-bikes are part of the solution, why are we making them harder to afford for the people who need them most?

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