Are you thinking about buying a new electric motorcycle in 2021? Do you live in the U.S. of A? If so, we have good news for you! Remember the federal tax credit that went into effect for new electric bike models at the end of 2019? It’s now been extended until January 1, 2022.
That’s right, any electric motorcycle that can go at least 45 mph is eligible for a 10-percent tax credit, up to $2,500. Now, that clearly works out to less than 10 percent of your cost if you purchase a Harley-Davidson LiveWire, with a 2020 MSRP starting at $29,799. However, $2,500 is still a nice bit of money you can save yourself.
Electric motorcycle owners new and old may also want to know about another federal tax credit extension. At the same time that electric motorcycle credit got extended, the 30 percent EV charger installation credit was re-upped, as well. For 2021, you’re eligible for a credit up to $1,000 for home installations and up to $30,000 for business installations on new EV chargers.
“The electric motorcycle industry is rapidly responding to our country’s need for affordable and environmentally responsible transportation, and Zero Motorcycles is excited to combine our extreme passion for motorcycles with something that benefits everyone,” Zero Motorcycles’ CEO Sam Paschel said in a statement.
“These tax credits represent an investment in a cleaner energy future, and also effectively create jobs in the ever-growing electric vehicle industry.”
Because of that 45-mph stipulation, while this tax credit covers all 2020 and 2021 Zero Motorcycle models, it’s worth noting that it doesn’t cover slow-speed electric two-wheelers. If you were interested in an electric moped or other neighborhood-oriented electric two-wheeler, it isn’t covered under the current U.S. federal tax credit scheme.
At the end of January, 2021, the Biden Administration announced a plan to begin phasing out the use of gas-powered vehicles throughout the federal government, in favor of EVs—and specifically, EVs made in America. As of 2019, the full federal government vehicle fleet consisted of nearly 650,000 vehicles.
While the details haven’t been hammered out yet, other concurrent federal government plans include additional federal tax incentives to get everyday people to switch from gas to electric vehicles. How those will affect the electric motorcycle industry in particular remains to be seen, but we’ll be keeping a close eye on how it all shakes out.