$2,500 Federal Tax Credit For Electric Motorcycles Is Back!

2 years ago by Mark Kane 17

EV Motorcyle Comparison

EV Motorcyle Comparison

Zero Motorcycles

Zero Motorcycles

The federal tax credit for two and three wheel plug-in electric motorcycles is back, just in time to apply for all purchases in 2015, and will stay around in 2016.

The news of the 10% tax credit (up to $2,500) resurrection after it disappeared in 2013 was announced by Zero Motorcycles:

“The tax credit was included in the “last minute” tax extenders bill approved by Congress on Friday and signed into law by President Obama that afternoon.

Zero Motorcycles took the lead in working with Plug-In America and a coalition of other electric motorcycle companies to ensure the plug-in tax credit would be extended and include electric motorcycles. Standing together with companies coast-to-coast, the coalition rallied Congress to take action and expand green jobs in this exciting and emerging industry. Zero Motorcycles dealers, customers and fans weighed in as well, urging Congress to support the extension of the plug-in tax credits.”

Lightning LS218

Lightning LS218

Tax credit is available on all Zero Motorcycles models and we believe that most other models on the market including Victory Empulse TT, latest Alta Motors Redshift, Lightning, Energica and more (provided top speed is at least 45 mph and battery is at least 4 kWh).

Richard Walker, CEO of Zero Motorcycles said:

“Tax credits for electric motorcycles are not only an effective way to create jobs, they are also an investment in clean energy technology. We think that America can and should lead the world in electric motorcycle technology. The electric motorcycle industry is rapidly responding to our country’s need for affordable and environmentally responsible transportation. We’re naturally excited to combine our passion for motorcycles with something that benefits everyone.”

Alta Redshift MX

Alta Redshift MX

Details from Zero press release:

“After many months of consistent work with Congress, two major plug-in tax credits, including the 2-3 wheeled plug-in tax credit which had expired at the end of 2013, were extended as part of the final tax extenders legislation signed by President Obama. The signed bill includes the following provisions:

  • Extends the EV infrastructure tax credit from the beginning of 2015 until the end of 2016.
  • In the case of the 2-3 wheeled plug-in tax credit, this covers 10 percent of the purchase price, up to $2,500 maximum, and applies only to vehicles capable of over 45 mph and with a 4 kilowatt-hour or larger battery pack.  The 2016 Zero S, Zero SR, Zero DS, Zero DSR, Zero FX and Zero FXS all qualify for the incentive.
  • These tax credits are retroactive and apply to electric motorcycles and EV chargers purchased in 2015. All new Zero models purchased in 2015 or 2016 are eligible for the tax credits.”

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17 responses to "$2,500 Federal Tax Credit For Electric Motorcycles Is Back!"

  1. protomech says:

    Nice. This drops the after-credit net price of the base S model to under $10k. Not bad for a bike with 81 miles of mixed riding range.

  2. Chris says:

    Are their anymore Benefits for electric cars in the new law. I see nothing written about it online.

    1. TX NRG says:

      Nope. Tax credits for EV cars were in the ‘permanent’ part of tax code and didn’t need to be in the tax extenders bill. The limits and scale down per manufacturer based on volume are unchanged.

  3. Ken_3 says:

    Great! I’ll get some cash back on my Zero FX purchased this year!

    1. 3laine says:

      Man, this makes me want an FX even more!!!

  4. mhpr262 says:

    That is great news for ZERO. The tax credits should be a significant boost for sales.

  5. There is also http://zelectricvehicle.com and they have a number of qualified 80 mph scooters.

  6. Chip says:

    “10 percent of the purchase price, up to $2,500 maximum, and applies only to vehicles capable of over 45 mph and with a 4 kilowatt-hour or larger battery pack”.

    $2,500 is 10% of $25,000, so it seems that none of the motorcycles listed qualifies for the $2500 tax credit.

    That is an odd result because it shifts the benefit to wealthy citizens who pay more than $2500 in federal taxes and can afford a motorcycle costing $25k (or even more).

    On the plus side, 3-wheelers are included, so a trike like the dearly departed Sparrow or Aptera could qualify. However quads like the Renault Twizy are excluded from both the motorcycle & car tax credits.
    Likewise, Neighborhood Electric Vehicles (NEVs) seem to be excluded.
    Would it be better policy if the motorcycle tax credit applied to any vehicle legally defined as a motorcycle or NEV?

    Maybe battery size would have been a more effective basis. For cars there was originally a sliding scale based on battery pack size up to 16kWh.
    That was logical, because the battery pack is expensive emerging technology.

    For motorcycles (& NEVs) you could have a tax credit of say $1,000 for the minimum 4kWh rising to $2,500 at say 15 or 16kWh.
    That way you incentivize energy dense bikes like the Zero.

    What do you guys believe would be most effective incentive scheme?

    1. mhpr262 says:

      At any rate it is folly to differentiate between three- and fourwheelers. There should be different classes of vehicles based on weight, with lighter vehicles subject to less harsh safety regulations. The lightest vehicles of all are motorcycles, and they have no crumple zone or airbags at all.

    2. sven says:

      The Toyota iRoad wouldn’t qualify for this credit, unless Toyota increases it’s maximum speed.

  7. Roman says:

    So those of us who purchased in 2014 get jobbed? That kind of sucks…

    1. I feel your pain. BC had a 5k point of sale rebate for years, then it expired in early 2014 and was not renewed at budget time. I wrote some letters and response was don’t expect it back, so took the plunge and bought a 2014 Leaf so I didn’t have to do my new commute on gas. The gov’t also didn’t seem interested in transportation since they were spending so much time pimping LNG. Then out of the blue the program was restarted in the 2015 budget and they wouldn’t do it retroactive, even though they easily could have. I think it is because the program is administered by the bc new car dealership association!!

    2. wavelet says:

      I have zero personal knowledge of this subject (pun fully intended), but according to
      http://electricmotorcycleforum.com/boards/index.php?topic=5330.msg37928#msg37928
      It is actually possible to get the rebate for 2014 by filing an amendment to the tax return.

      No idea how complex that is, but the incentive is $1000-$1500, right? Might be worth it.

  8. Lon says:

    Spira4u is a the GREENEST, SAFEST, SOFT enclosed vehicle which probably qualifies. With 3 wheels and a 5 K pack it should qualify. See http://www.spira4u.com Does anyone have a link to the exact wording of the law?

  9. This will apply to the Defiant EV3 Autocycle expected to be in production later this year. It has a retail price of $24,950, so pretty much the full amount of the tax credit will apply. For more details on the electric roadster, please see the recent video from AOL’s Autoblog TRANSLOGIC.

    http://www.autoblog.com/2015/11/12/defiant-ev3-three-wheel-translogic-188/

  10. Kent says:

    That’s GREAT news!!! As long as ZERO doesn’t raise their current prices, I will be getting an SR very soon (as soon as El Nino season is over here in CA).