SF 219

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 10/14/2025 11:48 a.m.

A bill for an act
relating to transportation; modifying the electric-assisted bicycle rebate program;
requiring a report; amending Minnesota Statutes 2024, section 289A.51,
subdivisions 3, 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 289A.51, subdivision 3, is amended to read:

Subd. 3.

Amount of rebate.

(a) The amount of a rebate under this section equals the
lesser of:

(1) deleted text begin the applicable percentage, multiplied by the amount deleted text end new text begin 75 percent new text end of eligible expenses
paid by an eligible individual; or

(2) deleted text begin $1,500 deleted text end new text begin $750 new text end .

deleted text begin (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:
deleted text end

deleted text begin (1) $50,000 for a married taxpayer filing a joint return; and
deleted text end

deleted text begin (2) $25,000 for all other filers.
deleted text end

new text begin (b) Eligibility for a rebate under this section is limited to eligible individuals with adjusted
gross incomes that were not more than:
new text end

new text begin (1) $78,000 in the case of a married eligible individual who filed a joint return; or
new text end

new text begin (2) $41,000 for all other individuals.
new text end

(c) For the purposes of determining the deleted text begin applicable percentage deleted text end new text begin income limit new text end under
paragraph (b) deleted text begin and subdivision 4, paragraph (a) deleted text end , 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rebates after December 31, 2024.
new text end

Sec. 2.

Minnesota Statutes 2024, section 289A.51, subdivision 4, is amended to read:

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 deleted text begin 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. deleted text end new text begin to eligible applicants. If the number of eligible applicants exceeds the available allocation
of rebate certificates, the commissioner must allocate certificates through a random lottery.
new text end

(c) new text begin If a random lottery is used to allocate certificates as provided in paragraph (b), the
commissioner must, by August 1, 2025, determine a suitable randomized method to allocate
the certificates and must:
new text end

new text begin (1) detail the department's anticipated timeline for the lottery, including when applications
for the lottery by an eligible individual must be made and when the commissioner anticipates
distributing the certificates;
new text end

new text begin (2) establish a method for an eligible individual to apply for placement into the lottery;
and
new text end

new text begin (3) provide the amount of certificates available to be distributed by the department to
the public.
new text end

new text begin (d) new text end 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 deleted text begin $1,500 deleted text end new text begin
$750 new text end .

deleted text begin (d) deleted text end new text begin (e) new text end 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
deleted text begin (c) deleted text end new text begin (d) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rebates after December 31, 2024.
new text end

Sec. 3. new text begin REPORT; ELECTRIC-ASSISTED BICYCLE REBATE PROGRAM.
new text end

new text begin (a) By January 15, 2026, the commissioner of revenue must submit a report to the chairs
and ranking minority members of the legislative committees with jurisdiction over taxes
and transportation. The report must comply with the requirements of Minnesota Statutes,
sections 3.195 and 3.197. At a minimum, the report must include:
new text end

new text begin (1) a comprehensive report on the operation of the electric-assisted bicycle rebate program
under Minnesota Statutes, section 289A.51, including the application system that resulted
in postponement and delay of the application process;
new text end

new text begin (2) a comprehensive analysis of the technical challenges resulting from a high volume
of applicants;
new text end

new text begin (3) a timeline of events that led to system failures in the application process;
new text end

new text begin (4) identification of technical or procedural challenges in the application and first-come,
first-served allocation of rebate certificates;
new text end

new text begin (5) costs incurred by the Department of Revenue as a result of the electric-assisted
bicycle rebate program, including expenditures on system fixes or additional staff resources;
new text end

new text begin (6) recommendations for addressing the specific failure in the application system and
preventing similar issues in future rebate certificate rollouts;
new text end

new text begin (7) an evaluation of any third-party vendor or contractor used in developing and managing
the application system, including any accountability measures applied; and
new text end

new text begin (8) the department's anticipated programming to institute a lottery system for allocating
electric-assisted bicycle rebate certificates.
new text end

new text begin (b) The commissioner must not use funds from the amount allocated for electric-assisted
bicycle rebate certificates in preparation of the report.
new text end

new text begin (c) This section expires on December 31, 2026, or upon submission of the report,
whichever is sooner.
new text end