El Paso County e-bike shops voice concern over financial impacts of state tax credit program
COLORADO SPRINGS, Colo. (KRDO) - A tax credit that will help Coloradans get $450 off an e-bike is creating some concern among bike shops in El Paso County.
The concerns surround the way that tax credit is being implemented.
Through the program, Coloradans get their $450 discount at the register the moment they purchase their e-bike. However, those bike shops have to give the discount and take on the financial burden until they get the money back through their 2024 tax returns.
One bike shop owner explains that $450 is more money than a lot of their bike sales turn in profit.
"Just suddenly we feel like we got in a situation where it's if we don't accept, we're not going to sell any bikes because we know people are going to go find that rebate or that retailer that will," said Greg Cobble, owner of E-Bike Sales and Rentals in Manitou Springs. "But if we do, you know, we're forced to take a loan out."
Cobble has owned his bike shop in Manitou Springs for the last three and a half years, and as a small business owner, he says he has already taken out loans for business expenses.
So, when Cobble initially heard of the state E-Bike Tax Credit through the state, he didn't plan to join.
"Originally we thought we just can't do it," said Cobble. "But as it drew closer, we heard others were doing it, and we know that if a customer can save a dollar, you know, especially 450, they're going to drive wherever they can save that money."
Ultimately, Cobble is choosing to take out that loan and participate, because he fears his business would go under if he didn't.
Cobble says the process is nerve-wracking, but if all goes well, he does believe the program could be a positive thing for his business.
He is excited for the opportunity to hopefully sell more bikes, but he hopes that in future rebate programs, the state won't put the financial strain and burden on small businesses.
The state is encouraging shops to contact the Colorado Enterprise Fund for financing support. It's a resource for shops that might not be able to qualify for financing through traditional means.
