State working with IT vendors to fix Minnesota e-bike rebate fiasco

State officials are working with their technology consultants to fix the online application for a new e-bike rebate program, which crashed shortly after launching on Wednesday. It’s still unclear when rebate applications will be accepted again.

In a news release Thursday, the Minnesota Department of Revenue said the two vendors it hired to handle rebate requests “were unable to support the capacity needed for the launch,” despite “anticipated high demand.”

The state hired Turnberry Solutions, which has offices in Minneapolis and Pennsylvania, as the application developer for $150,462, and Salesforce, of San Francisco, as the host platform service provider. Salesforce was paid $3,747 for 10 licenses.

Representatives from both companies were not available for comment Thursday.

State officials said they are troubleshooting technical issues with the vendors that caused the application to shut down Wednesday. “We continue to work with our partners to ensure the relaunch of this program is successful, and we will implement additional measures to ensure a positive experience.”

An update on the program is expected early next week.

Cycling enthusiasts heartily embraced the new state program, which offers a 50% to 75% discount on the purchase of new e-bikes, up to $1,500, depending on one’s income. But the website, which went live at 11 a.m., was shut down by 1:30 p.m. with fewer than 80 applications successfully completed. (Those applications will be honored.)

Rebates were supposed to be distributed on a first-come, first-served basis, which was written in the original legislation. This has prompted much criticism on social media, with some saying the system should have been set up as a lottery.

“I’m usually not a fan of ‘first come, first serve’ as I am sitting in row 26 on a Southwest flight with first-come first-served seating,” wrote Sen. Jim Carlson, DFL-Eagan, one of the e-bike bill’s authors, in an email Thursday.

“Clearly the system didn’t work the way it should have, which is unfortunate because this program is an amazing thing,” said Rep. Frank Hornstein, DFL-Minneapolis, who chaired the House Transportation Policy and Finance Committee before announcing his retirement this session.

Rep. Lucy Rehm, DFL-Chanhassen, the chief author in the House, said in an email that at one point, 30,000 people were trying to apply for the rebate. The law was modeled after states with similar programs, including Colorado, but they didn’t have the same technical issue with applications.

Rehm said Minnesota IT Services and the outside vendors did multiple tests before the launch with no issues. “It’s good to see so much interest in e-bikes and very unfortunate that we can’t give out rebates to everyone who would benefit from owning one,” she said.

Representatives from the Department of Revenue and Minnesota IT Services declined to be interviewed.

E-bikes, or electric bikes, are equipped with rechargeable electric motors to assist cyclists with pedaling. Prices generally range from $600 to $2,500 or more.

The state has set aside $2 million this year for e-bike rebates, and another $2 million in 2025.