Zero Motorcycles line of street legal electric motorcycles are eligible for the recently passed 10% federal tax credit for plug-in vehicles.

The tax credit will be available on your 2010 IRS Form 1040.

Example — purchase of a Zero S:
If you purchase a Zero S for $9,995 and keep the receipt. At the end of the year you will be eligible for a 10% tax credit. This means the federal government will literally give you back $999. This effectively reduces the purchase price of your motorcycle by $1000 and reduces the total cost to $8,995.

As part of the American Recovery and Reinvestment Act of 2009 (H.R.1) two new tax incentives were included for electric motorcycles.

This 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 2010.