Great news! Customers who purchased 2017 Zero are eligible for a tax credit from the Federal Government on their 2017 tax return filing. The tax credit was included in the tax extenders bill approved by Congress and signed into law by the President early on Friday, February 9th 2018.
The E-motorcycle Federal Tax Credit, also know as the 2-wheeled plug-in tax credit, covers 10 percent of the purchase price, up to a maximum of $2,500.
This is a true tax credit so it reduces the customer’s tax liability. For example, if the customer owes $11,000 in taxes, and purchased a $15,995 2017 model Zero SR, this credit would reduce their taxes by $1,600 to $9,400. It is not a tax deduction but a tax credit so, if the customer is due a refund by the IRS, their refund would be increased by the amount of the tax credit.
As a reminder, the amount of the credit is determined by the final bill of sale price for the motorcycle, including any configuration accessories and any additional batteries purchased on the same invoice. The final cost of the motorcycle is based on the total bill of sale price, less taxes, fees, and registration so, if the motorcycle was discounted, the tax credit applies to the discounted price.
As with all tax matters, this information does not constitute tax advice, so please advise customers to consult their tax advisor, attorney, or accountant for specific details on how to claim these tax benefits. The IRS will be providing final 2017 forms and instructions for these tax incentives as soon as possible. Customers who have already filed will be required to file an amended return to claim the credit.
We thank our lawmakers and the good folks at Plugin-America who lobbied to keep the EV tax credits.