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. This may include motorcycle accessories purchased on the same invoice as your new Zero. As an added bonus, there is also a 30% federal tax credit which covers electric motorcycle charging equipment.
The credit only applies to street legal electric 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|
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 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.
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 has provided final forms and instructions for these tax incentives in time to meet the 2012 tax return season. The 2012 IRS form for e-motorcycles can be found here: http://www.irs.gov/pub/irs-pdf/f8834.pdf. The 2012 IRS Form for charging equipment can be found here: http://www.irs.gov/pub/irs-pdf/f8911.pdf.
The IRS will likely issue new forms for 2013, so please use this for informational purposes only and refer to the IRS website for the latest information and forms.