Fiscal cliff bill preserves electric motorcycle and other tax credits
The U.S. narrowly avoided a self inflicted recession that was to be triggered by the "Fiscal Cliff" when Congress passed an emergency bill, the American Taxpayer Relief Act of 2012. There was a long list of special tax provisions due to expire at the end of 20112, some of which were related to green energy and electric vehicles. With the extreme political wrangling, these may have gotten lost, but instead they were preserved in the bill.
The Joint Committee on Taxation published an 8-page list of details of the tax effects of the Taxpayer Relief Act. The list of preserved tax items is good news for those in support of the green energy and technology proposals of the Obama Administration.
The tax credits for 2- and 3- wheeled electric vehicles has been preserved. This covers 10 percent of the purchase price, up to $2,500 maximum, and applies only to vehicles with a 4 kilowatt-hour (or larger) battery pack that can go over 45 miles/hr. This affects Brammo and Zero Motorcycles, both of whom are selling electric motorcycles with top speeds over 100 miles/hr, as well as several smaller electric motorcycle and scooter manufacturers.