1.1 A bill for an act
1.2 relating to transportation; repealing the electric-assisted bicycle rebate; repealing
1.3 Minnesota Statutes 2024, section 289A.51.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. REPEALER.
1.6 Minnesota Statutes 2024, section 289A.51, is repealed.
1.7 EFFECTIVE DATE.This section is effective the day following final enactment.
1Section 1.
25-03758 as introduced02/11/25 REVISOR KRB/HL
SENATE
STATE OF MINNESOTA
S.F. No. 1584NINETY-FOURTH SESSION
(SENATE AUTHORS: DRAZKOWSKI, Gruenhagen, Green, Utke and Lucero)
OFFICIAL STATUSD-PGDATE
Introduction and first reading02/20/2025
Referred to Transportation 289A.51 ELECTRIC-ASSISTED BICYCLE REBATE.
Subdivision 1.Definitions.(a) For purposes of this section, the following terms have the
meanings given.
(b) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision 27, except
that the term is limited to a new electric-assisted bicycle purchased from an eligible retailer.
(c) "Eligible expenses" means the amount paid for an electric-assisted bicycle and any qualifying
accessories purchased at the same time as the electric-assisted bicycle, inclusive of sales tax but
exclusive of any other related charges, including charges for a warranty, service, or delivery.
(d) "Eligible individual" means an individual who:
(1) is at least 15 years old;
(2) is a resident individual taxpayer at the time of application for a rebate certificate and in the
previous calendar year; and
(3) was not claimed as a dependent on another return in the taxable year described in subdivision
3, paragraph (c).
(e) "Eligible retailer" means a person who has engaged in the business of retail sales of new
electric-assisted bicycles for at least six months prior to receiving the approval of the commissioner
under subdivision 5.
(f) "Qualifying accessories" means a bicycle helmet, lights, lock, luggage rack, basket, bag or
backpack, fenders, or reflective clothing.
Subd. 2.Rebate established.An eligible retailer that has been assigned a rebate certificate by
an eligible individual may apply to the commissioner for a rebate, as provided in this section.
Subd. 3.Amount of rebate.(a) The amount of a rebate under this section equals the lesser of:
(1) the applicable percentage, multiplied by the amount of eligible expenses paid by an eligible
individual; or
(2) $1,500.
(b) The applicable percentage equals 75 percent, but is reduced by one percentage point until
the percentage equals 50 percent, for each $4,000 of the eligible individual's adjusted gross income
in excess of:
(1) $50,000 for a married taxpayer filing a joint return; and
(2) $25,000 for all other filers.
(c) For the purposes of determining the applicable percentage under paragraph (b) and subdivision
4, paragraph (a), the commissioner must use the eligible individual's adjusted gross income for the
taxable year ending in the calendar year prior to the year in which the individual applied for a rebate
certificate.
Subd. 4.Commissioner to issue rebate certificates.(a) To qualify for a rebate under this
section, an eligible individual must apply to the commissioner for a rebate certificate in the manner
specified by the commissioner prior to purchasing an electric-assisted bicycle. As part of the
application, the eligible individual must include proof of the individual's adjusted gross income for
the taxable year specified in subdivision 3, paragraph (c). The commissioner must issue a rebate
certificate to an eligible individual stating the issuance date, the applicable percentage, and the
maximum rebate for which the taxpayer is eligible. For a married taxpayer filing a joint return, each
spouse may apply to the commissioner separately, and the commissioner must issue each spouse a
separate rebate certificate.
(b) The commissioner of revenue may determine the date on which to open applications for a
rebate certificate, and applications must not be submitted before the date determined by the
commissioner. Beginning July 1, 2024, and July 1 of each subsequent calendar year for which there
is an allocation of rebate certificates, the commissioner must allocate rebate certificates on a
first-come, first-served basis. The commissioner must reserve 40 percent of the certificates for a
married taxpayer filing a joint return with an adjusted gross income of less than $78,000 or any
other filer with an adjusted gross income of less than $41,000. Any portion of the reserved amount
under this paragraph that is not allocated by September 30 is available for allocation to other rebate
certificate applications beginning on October 1.
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APPENDIX
Repealed Minnesota Statutes: 25-03758 (c) The commissioner must not issue rebate certificates totaling more than $2,000,000 in each
of calendar years 2024 and 2025, except any amount authorized but not allocated in any calendar
year does not cancel and is added to the allocation for the next calendar year. When calculating the
amount of remaining allocations, the commissioner must assume that each allocated but unclaimed
certificate reduces the available allocations by $1,500.
(d) A rebate certificate that is not assigned to a retailer expires two months after the date the
certificate was issued and may not be assigned to a retailer after expiration. The amount of any
expired rebate certificates is added to the available allocation under paragraph (c).
Subd. 5.Certification of eligible retailers.To be eligible to be assigned a rebate certificate
under this section, an eligible retailer must apply to the commissioner of revenue to be certified as
an eligible retailer in the manner specified by the commissioner. The application must include proof
that the person applying has been actively involved in the business of retail sales of new
electric-assisted bicycles for at least six months.
Subd. 6.Application for rebate.(a) An eligible individual who purchases an electric-assisted
bicycle may assign a rebate certificate to an eligible retailer at the time of purchase. The retailer
must reduce the price of the electric-assisted bicycle by the amount of the rebate determined under
subdivision 3.
(b) The commissioner must establish the form and manner by which a taxpayer may assign a
rebate certificate to a retailer. The commissioner must establish a process through which retailers
may quickly verify the validity of a rebate certificate at the time of purchase.
(c) An eligible retailer that was assigned a rebate certificate may apply to the commissioner for
a rebate within one month of the date of the sale. The application must be in the manner specified
by the commissioner. The commissioner must pay to an eligible retailer who meets the requirements
of this section the amount of the rebate determined under subdivision 3.
(d) Only an eligible retailer may apply for a rebate under this subdivision. To receive the benefit
of a rebate under this section, an eligible individual must assign a rebate certificate to an eligible
retailer.
(e) A rebate certificate under this section must not be assigned or transferred more than once.
(f) The commissioner must not pay any rebates under this section after June 30, 2026.
Subd. 7.Limitations.(a) The commissioner must not issue an eligible individual a rebate
certificate more than one time. This limitation does not apply to a rebate certificate that expired.
(b) If an eligible individual purchases an electric-assisted bicycle using a rebate under this
section and returns the bicycle to an eligible retailer, the eligible retailer must repay to the
commissioner the amount of the rebate received.
(c) The commissioner must not issue a rebate certificate to an eligible individual who is subject
to a claim for a refund under chapter 270A.
(d) For electric-assisted bicycles purchased using rebates under this section:
(1) an eligible retailer must charge the same retail price for an electric-assisted bicycle as the
retailer charges for the same bicycle if it is purchased without a rebate; and
(2) an eligible retailer must not charge a retail price in excess of the manufacturer's suggested
retail price.
Subd. 8.Appropriation.$4,000,000 in fiscal year 2024 is appropriated from the general fund
to the commissioner to implement the requirements under this section, including but not limited to
administration and payment of refunds. This is a onetime appropriation and is available until June
30, 2026.
Subd. 9.Sunset.This section expires June 30, 2026. The expiration of this section does not
affect the commissioner's authority to audit or power of examination and assessment for rebates
claimed under this section.
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APPENDIX
Repealed Minnesota Statutes: 25-03758