E-bike rebate for Minnesotans could be a lottery system in 2025

ST. PAUL, Minn. (FOX 9) - Following an e-bike rebate program that crashed the state’s system in 2024 – leading to cries from the public about the process being unfair – state officials could switch to a lottery system in 2025.

Minnesota e-bike rebates in 2025

What we know:

Under H.F. 2249, authored by Rep. Lucy Rehm (DFL-Chanhassen), beginning on July 1, 2025 – and on July 1 each year after – a commissioner would allocate rebate certificates on a lottery basis, totaling up to $2 million annually.

How it works:

As part of a person’s application for the lottery, they will need to include proof of their gross income. After a submission is complete, they will be issued a rebate certificate stating the percentage and maximum rebate for which they are eligible.

Under the proposal, the commissioner would reserve 40% of rebate certificates for a married taxpayer filing a joint return with a gross income of less than $78,000, or any other filer with an adjusted gross income of less than $41,000.

For a married taxpayer filing a joint return, each spouse could apply separately, and could be eligible for their own certificate.

Any remaining funds not doled out by Sept. 30, 2025, would then become available for additional applicants beginning on Oct. 1, 2025.

What does the rebate cover?

Dig deeper:

With each rebate, the state will cover 50-75% of a qualifying $1,500 purchase, depending on the prescribed income thresholds.

Any Minnesota resident over the age of 15, who was not claimed as a dependent on 2023 tax forms, is eligible to apply.

Minnesota's e-bike rebate system crashes

The backstory:

The first round of e-bike rebates for Minnesotans in 2024 didn’t go as planned.

Applications for the 2024 program were initially set to open on June 5, 2024, but shortly after the 11 a.m. opening, the Minnesota Department of Revenue’s website crashed due to overwhelming demand.

At the time, the department said it would work to identify anyone who successfully submitted an application and let them know their application was received. However, officials then backtracked to say that fewer than 80 applications were successfully submitted in the hours before the site shut down.

A second round of applications opened at 11 a.m. on July 2, with those accepted taking turns in a virtual waiting room before accessing an application.

The department said the system aimed to control the surge of users, similar to what major sports teams or concerts use when selling a limited number of tickets.

However, it was again plagued by system failures, with potential applicants complaining of stalls, and the waiting room being filled up in mere minutes.

The new lottery system aims to make the 2025 version much smoother.

The department estimates awarding around 1,300 rebate certificates in total.

What's next:

To keep tabs on how it went, the bill also requires a report from the Department of Revenue to the legislature by Jan. 15, 2026.

However, it will still face several committee hearings before potentially being enacted.