HF2249

Purpose of the Bill

The purpose of this bill is to modify the existing electric-assisted bicycle rebate program in Minnesota. The bill aims to streamline the issuance of rebate certificates and ensure a fair allocation process among applicants.

Main Provisions

• Application Process: Eligible individuals must apply for a rebate certificate before purchasing an electric-assisted bicycle. The application must include proof of the individual’s adjusted gross income as specified by the commissioner.

• Rebate Certificate Issuance: The rebate certificates will specify the issuance date, the applicable rebate percentage, and the maximum rebate amount. Married couples filing jointly can each apply for separate certificates.

• Application Opening Dates: The Commissioner of Revenue decides the start date for accepting applications. No submissions are allowed before this date.

• Allocation of Certificates: Starting July 1, 2024, and on July 1 of subsequent years, rebate certificates are distributed on a first-come, first-served lottery basis. Forty percent of certificates are reserved for lower-income applicants, specifically households with an income below certain thresholds.

• Funding and Expiration: The total rebate certificates issued cannot exceed $2,000,000 annually for 2024 and 2025. Unused funds can roll over to the next year. A certificate not assigned to a retailer expires after two months, and expired certificates are added back into the available pool for future allocations.

Significant Changes to Existing Law

• The bill specifies a new lottery-based allocation method for distributing rebate certificates, replacing any previous methods.
• It introduces an income-based reservation of rebate certificates to ensure access for lower-income applicants.
• There is a cap on the total value of rebate certificates issued annually, establishing a clear budgetary constraint for the program.

Relevant Terms

electric-assisted bicycle, rebate program, rebate certificate, joint return, adjusted gross income, allocation, first-come first-served, lottery basis, expired certificates.