The E-motorcycle Federal Tax Credit, also known as the 2-3 wheeled plug-in tax credit, was included in the fiscal deal approved by Congress on New Year's Day and signed into law by President Obama late on Wednesday January 2nd, 2013. It covers 10% of the purchase price up to a maximum of $2,500. As an added bonus, the credit also covers electric motorcycle chargers.
The credit only applies to street legal motorcycles with 2.5 kilowatt-hour (or larger) battery packs that can go over 45 mph. The federal tax credit is available in all 50 US states and applies to motorcycles purchased in both 2012 (retroactive) and 2013.
|2013 Models||Retail Price||Federal Tax Credit|
|Zero S and Zero DS (ZF11.4)||$15,995||$1,600|
|Zero S and Zero DS (ZF8.5)||$13,995||$1,400|
|Zero FX (ZF2.8)||$9,495||$950|
|Zero XU (ZF2.8)||$7,995||$800|
|2012 Models||Retail Price||Federal Tax Credit|
|Zero S and Zero DS (ZF9)||$13,995||$1,400|
|Zero S and Zero DS (ZF6)||$11,495||$1,150|
|Zero X (Street)||$9,945||$995|
|2011 Models||Retail Price||Federal Tax Credit|
|Zero XU + 2nd Bat.*||$10,990||$1,099|
|Zero XD + 2nd Bat.*||$11,490||$1,149|
|2010 Models||Retail Price||Federal Tax Credit|
*Note - to be eligible, the original invoice must include the purchase of an additional powerpack
This is a true tax credit and not a tax deduction. It reduces your tax liability. For example: if you owe $11,000 in taxes, and purchased a $13,995 2012 Zero S ZF9, this credit would reduce your taxes by $1,400 to $9,600. If you are owed a refund by the IRS, your refund will be increased by the amount of the tax credit.
This federal tax credit is retroactive for all of 2012, so all customers who purchased one of the product configurations listed above are eligible for the 10% federal tax credit.
As a reminder, these tax credits are based on the final bill of sale price for the motorcycle (and any additional batteries) to the customer. 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.
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 as soon as possible to meet the 2012 tax return season. The 2011 IRS form can be found here: http://www.irs.gov/pub/irs-pdf/f8834.pdf
The IRS will issue new forms for 2012 and 2013 so please use this for informational purposes only.