The E-motorcycle Federal Tax Credit, also known as the 2-wheeled plug-in tax credit, was included in the tax extenders deal approved by Congress and signed into law by President Obama late on Friday December 18, 2015. It covers 10% of the purchase price up to a maximum of $2,500. As an added bonus, an additional tax credit was approved which covers electric motorcycle chargers (Zero Quick Charger) and the Zero Charge Tank with a 30% tax credit up to $1,000.
The credit only applies to street legal motorcycles that can go over 45 mph. The federal tax credit is available in all 50 US states and applies to motorcycles purchased in both 2015 (retroactive) and 2016.
|Calfornia||$900 state rebate|
|» San Joaquin Valley||Additional $1000 rebate|
|Massachusetts||$750 rebate (limited funds)|
|Maryland||$125/kWh excise tax credit|
|Pennsylvania||$500 rebate (limited funds)|
|Utah||$750 tax credit|
|Arizona||Reduced vehicle license tax|
|Illinois||Reduced vehicle registration fee|
|2016 Models||Retail Price||Federal Tax Credit||Effective Price|
|Zero S and Zero DS (ZF9.8)||$10,995||$1,100||$9,895|
|Zero S and Zero DS (ZF13.0)||$13,995||$1,400||$12,595|
|Zero SR and Zero DSR (ZF13.0)||$15,995||$1,600||$14,395|
|Zero FX and Zero FXS (ZF3.3)||$8,495||$850||$7,645|
|Zero FX and Zero FXS (ZF6.5)||$10,990||$1,100||$9,890|
|2015 Models||Retail Price||Federal Tax Credit||Effective Price|
|Zero S and Zero DS (ZF9.4)||$11,995||$1,200||$10,795|
|Zero S and Zero DS (ZF12.5)||$13,995||$1,400||$12,595|
|Zero SR (ZF12.5)||$15,995||$1,600||$14,395|
|Zero FX (ZF2.8)||$8,495||$850||$7,645|
|Zero FX (ZF5.7)||$10,990||$1,100||$9,890|
|Charging Accessories||Retail Price||Federal Tax Credit||Effective Price|
As a reminder, these tax credits are based on the final bill of sale price for the motorcycle to the customer (including any configuration accessories and any additional batteries purchased on the same invoice). Cost of the vehicle can be based on the total bill of sale price, less taxes, fees, and registration. If the product was discounted, the tax credit applies to the discounted price.
To ensure eligibility for the 30% federal tax credit on charging equipment, it is recommended that these accessories be purchased on a separate invoice which can be used as documentation for tax purposes.
This federal tax credit is retroactive for all of 2015, so all customers who purchased a Zero Motorcycle in 2015 are also eligible for the 10% federal 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 tax incentives later in 2016.