Plug In Electric Vehicle Tax Credit for Motorcycles
As part of the American Recovery and Reinvestment Act of 2009 (H.R.1) two new tax incentives were included for electric motorcycles.
The first is a tax credit in Section 1142 (H.R.1, pp. 214-217) which changes IRS Code Section 30 to allow for 2 wheeled electric vehicles to be included as a “qualified plug-in electric vehicle” in the overall plug-in vehicle tax credit. These vehicles which need to be able to drive on public roads, streets, and highways, are eligible for a 10% Federal Tax Credit up to a maximum of $2,500. This is a Federal tax credit, which reduces your tax liability by the amount of the credit; eg: if you owe $5,000 to the IRS and purchase an $11,000 electric motorcycle package, you would receive an $1,100 credit and now owe $3,900. If you are owed a refund by the IRS, your refund is increased by the amount of the tax credit.
As with all tax matters, this information does not constitute tax advice, please consult your tax advisor, attorney, or accountant for specific details on how to claim these tax benefits. The IRS will be providing final forms and instructions for these new tax incentives later in 2009.
Learn more about Plug In Electric Vehicle Tax Incentives by state
