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Author Topic: EV Motorcycle Tax Credit Returns in the US...with a catch  (Read 214 times)

mrwilsn

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EV Motorcycle Tax Credit Returns in the US...with a catch
« on: February 11, 2018, 04:59:50 AM »

Leave it to the US congress to make laws that allow them to take credit for doing something green while totally screwing potential customers and the industry at the same time....

The US Congress retroactively extended the credit for electric motorcycles.  If you purchased an electric motorcycle in 2017, it turns out you will get the EV Tax Credit of 10% up to $2500.

The bad news....this is a retroactive change AND it's only good for purchases made between December 31, 2016 through January 1, 2018.  That's right.....the bill that was just passed this week is retroactively only good through January 1, 2018.  I can guarantee a lot of buyers didn't buy in 2017 because they didn't think they would be getting the credit, thus the uncertainty KILLED EV motorcycle sales in 2017.  If you happened to buy a bike in 2017 anyway, good news for you.

Now we are left with the same situation for 2018.  Buyers are left wondering if the US Congress will once again extend the credit to include bikes purchased in 2018.  Which means that sales will once again be slammed by the uncertainty.

Thanks US Congress!!

https://electrek.co/2018/02/09/ev-charging-credit-extended-2018/

https://www.congress.gov/bill/115th-congress/house-bill/1892/text?r=1#toc-H595CF07C98BE40B8B21E578B818CFC86
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Fran K

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #1 on: February 11, 2018, 07:31:47 AM »

Thanks for pointing this out.

Perhaps you know a bit more.  I wandered around your links and it seems my ktm freeride just barely makes the minimum battery size.  Do I need anything from the place I purchaced the bike?  I still have a yellow receipt but nothing saying it is an electric vehicle.   I got a certificate of origion.  I did not see anyting in those tax links saying it had to be designed for use on streets roads and highways.

Fran
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mrwilsn

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #2 on: February 11, 2018, 08:46:39 AM »

It's up to KTM to register the VIN for the bike with the IRS.  Which is what makes the timing of the change all that much more frustrating.  It's likely to take a while before OEM's will get the data needed to the IRS.

I purchased my 2017 Zero SR in December of 2016 and I was able to get the tax credit when I filed my taxes for 2016.  I used turbo tax and there was a section for the EV credits.  I selected the make, manufacturer and year of the bike and the date I took delivery of the bike.  Then I had to enter the VIN.  That was it, however, it wouldn't surprise me if it takes at least a few weeks for tax software to catch up.
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Richard230

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #3 on: February 11, 2018, 08:30:38 PM »

It's up to KTM to register the VIN for the bike with the IRS.  Which is what makes the timing of the change all that much more frustrating.  It's likely to take a while before OEM's will get the data needed to the IRS.

I purchased my 2017 Zero SR in December of 2016 and I was able to get the tax credit when I filed my taxes for 2016.  I used turbo tax and there was a section for the EV credits.  I selected the make, manufacturer and year of the bike and the date I took delivery of the bike.  Then I had to enter the VIN.  That was it, however, it wouldn't surprise me if it takes at least a few weeks for tax software to catch up.

Based upon my previous experience applying for this credit (4 times so far), it may be months before the IRS gets around to updating their EV credit form to accept motorcycles and then (as you say) the manufacturers have to provide the IRS with their applicable VINs.  It took a couple on months before Zero got around to updating the CA rebate program computer application software so that it would accept their 2018 models. Smaller and foreign manufacturers (like BMW and Energica) will likely be even slower.

Updating the EV credit form seems to be the last thing that the IRS does when a new tax law is passed and they have to catch up. And things are not going to be any better this year as I hear that the IRS staffing has been cut quite a bit since the Republicans have come to power.  "To add insult to injury", my one experience with H&R Block was that they waited until after the IRS updated their form before their computer system would allow you to file for the credit using their system.  So I doubt it is going to be quick or easy to get this credit if you have bought a new electric motorcycle during the specified time period and want to prepare your return in a timely manner.

Since I have already filed my return, my plan is to file an amended tax return to apply for the credit for the purchase of my 2018 Zero during last November after the filing deadline in April, when things have slowed down at my (really cheap) tax return preparer (who this time of the year typically has a line of people waiting in his office and stretching out the door into the building's corridor until after April 15.)
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Richard's motorcycle collection:  2018 16.6 kWh Zero S, 2016 BMW R1200RS, 2011 Royal Enfield Bullet 500 Classic, 2009 BMW F650GS, 2005 Triumph T-100 Bonneville, 2002 Yamaha FZ1 (FZS1000N) and a 1978 Honda Kick 'N Go Senior.

calamarichris

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #4 on: February 12, 2018, 09:19:43 AM »

Thanks for posting this. Our Congress (& others) are loathsome to me, but at least I got lucky this time. Paid mine in full and have the sales contract dated in mid-December.
I'm sure we'll return to sanity soon.
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mshaw87

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #5 on: February 13, 2018, 05:55:20 PM »

I bought a 2017 Zero SR this summer knowing the credit wasn't currently active so this is welcome news even if its inconvenient as heck!

I just filed my taxes yesterday.. should I amend them now or wait a couple months? Does Zero need to update the IRS before they'll accept my VIN as a valid credit, and doing so now would just get my amended return denied?
« Last Edit: February 13, 2018, 05:58:44 PM by mshaw87 »
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Richard230

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #6 on: February 13, 2018, 09:02:05 PM »

I bought a 2017 Zero SR this summer knowing the credit wasn't currently active so this is welcome news even if its inconvenient as heck!

I just filed my taxes yesterday.. should I amend them now or wait a couple months? Does Zero need to update the IRS before they'll accept my VIN as a valid credit, and doing so now would just get my amended return denied?

Who knows about this year.  ??? But the IRS has a lot of things to change in their tax return computer forms and it has been my experience that fixing the EV credit form is about the last thing they will get around to doing. Also, I am pretty sure that until Zero provides them with a list of VIN numbers that were manufactured last year, you won't be able to enter the VIN for your bike into their automated form if you file electronically.  However, you might be able to do so if you prepare your return manually and mail it into the IRS.  By the time they get around to reviewing it, they will likely have that information by then.

My recommendation (and what I plan to do), since I have already sent in my return, is to wait until after April 15 when things have slowed down at tax preparers' offices, and file an amended tax return.  After all, the money isn't going anywhere and if the government needs more, they can always print it up.   ;)  Of course, if you need the refund now then filing as early as possible would be the thing to do, but you will have to check with a professional (such as someone other than me) to find out when that can be accomplished. 
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Richard's motorcycle collection:  2018 16.6 kWh Zero S, 2016 BMW R1200RS, 2011 Royal Enfield Bullet 500 Classic, 2009 BMW F650GS, 2005 Triumph T-100 Bonneville, 2002 Yamaha FZ1 (FZS1000N) and a 1978 Honda Kick 'N Go Senior.

Richard230

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #7 on: February 15, 2018, 09:14:05 PM »

I just checked with my tax guy and he tells me that the IRS has not updated their EV credit tax form yet.  He says that he will keep checking and let me know whenever they get around to doing so.  In 2014 they didn't update the form until March - and that was when the revised tax law became effective the previous December.  Plus, the IRS had a much larger staff back then.  I bet they don't get that form updated for another month or two. With all of the changes in the tax law for 2018, those guys are really going to be busy this year.
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Richard's motorcycle collection:  2018 16.6 kWh Zero S, 2016 BMW R1200RS, 2011 Royal Enfield Bullet 500 Classic, 2009 BMW F650GS, 2005 Triumph T-100 Bonneville, 2002 Yamaha FZ1 (FZS1000N) and a 1978 Honda Kick 'N Go Senior.

Richard230

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« Last Edit: February 16, 2018, 09:10:18 PM by Richard230 »
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Richard's motorcycle collection:  2018 16.6 kWh Zero S, 2016 BMW R1200RS, 2011 Royal Enfield Bullet 500 Classic, 2009 BMW F650GS, 2005 Triumph T-100 Bonneville, 2002 Yamaha FZ1 (FZS1000N) and a 1978 Honda Kick 'N Go Senior.

Fran K

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Re: EV Motorcycle Tax Credit Returns in the US...with a catch
« Reply #9 on: February 16, 2018, 08:04:03 PM »

I found this text in richard230's above first link

" is manufactured primarily for use on public roadways"

It took a while and putting stuff in the search box and I found the instructions
https://www.irs.gov/instructions/i8936
and the form  https://www.irs.gov/pub/irs-pdf/f8936.pdf  I guess this stuff just is a waste of time for ktm freeride riders, however I do think it was intended for highway use in other parts of the world.

edit, I just proved I could find the second two documents linked in the above post from the first one with some effort.

Perhaps the next question for  us dirt oriented guys is the Alta "enduro" version I think ex going to qualify if this program is retroactively extended next cycle.  It would make an alta with an 18 inch wheel and kickstand closer in out of pocket cost to the mx version and extra parts and labor.
« Last Edit: February 16, 2018, 08:12:54 PM by Fran K »
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