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[stevenh]

The IRS audited me and rejected my claim of 2K+ for my 2020 SR/F (2019 return).  They did allow $7500 on my Honda Clarity that same year.  They claim the 2020 Zero Motorcycle is not eligible under IRC 30D(g).  Has anyone else run into this, and what did you provide to the IRS as proof of eligibility for the Zero?

Thanks in advance.

Steve

[Richard230]

Gee, that sucks.  I received an IRS rebate on every electric motorcycle that I have bought, going back to my 2009 and 2010 Electric Motorsport GPR-S bikes, which technically didn't qualify for a rebate as I applied as if it was an ICE conversion, since the manufacturer never bothered getting it approved by the IRS. I had no problem getting my 2014 S approved for a rebate. For my 2017 tax return, the IRS credit for motorcycles, which had expired, was reactivated at the last minute by Congress, but the IRS hadn't issued the form for getting the credit when my tax guy submitted my return in 2018. However, he submitted an amended return in July, after the IRS form became available and I received a check from the Treasury department for $1,800 a month or two later. I have never had a problem getting the rebate.

I wonder what changed last year? The SR/F certainly seems to have sufficient battery capacity and its high price should qualify for the 10% rebate. Did Zero forget to file the documents verifying that their motorcycles qualify for the rebate? I seem to recall that last year they were bragging that you could get a 10% credit from the IRS as a way of convincing people to buy one of their bikes.    It might be worthwhile to see what the IRC (IRS?) 30D(g) is all about.

[EVFX]

https://www.irs.gov/businesses/irc-section-30dg-qualified-2-or-3-wheeled-plug-in-electric-drive-motor-vehicles

Perhaps it's simply because ZERO MC's isn't on the list of qualified vehicles... which is total BS when it meets every single requirement listed.

[stevenh]

Gee, that sucks.  I received an IRS rebate on every electric motorcycle that I have bought, going back to my 2009 and 2010 Electric Motorsport GPR-S bikes, which technically didn't qualify for a rebate as I applied as if it was an ICE conversion, since the manufacturer never bothered getting it approved by the IRS. I had no problem getting my 2014 S approved for a rebate. For my 2017 tax return, the IRS credit for motorcycles, which had expired, was reactivated at the last minute by Congress, but the IRS hadn't issued the form for getting the credit when my tax guy submitted my return in 2018. However, he submitted an amended return in July, after the IRS form became available and I received a check from the Treasury department for $1,800 a month or two later. I have never had a problem getting the rebate.

I wonder what changed last year? The SR/F certainly seems to have sufficient battery capacity and its high price should qualify for the 10% rebate. Did Zero forget to file the documents verifying that their motorcycles qualify for the rebate? I seem to recall that last year they were bragging that you could get a 10% credit from the IRS as a way of convincing people to buy one of their bikes.    It might be worthwhile to see what the IRC (IRS?) 30D(g) is all about.

Yes, I requested documentation from Zero when I got the initial notification (at that point the had dis-allowed both the Honda and the Zero, one step at a time).  I sent them the same information I sent with my original tax return and the Honda got magically accepted.  I also included a "certificate" I got from Zero that is quite likely the wrong thing (EPA Conformity with the clean air act in 2019).  I requested something specific to 30D(g) this time (that is the original electric vehicle rebate/credit program).  We'll see what I get from Zero this time.

I did get the credit on my 2016 DSR without issue.

Steve

[stevenh]

https://www.irs.gov/businesses/irc-section-30dg-qualified-2-or-3-wheeled-plug-in-electric-drive-motor-vehicles

Perhaps it's simply because ZERO MC's isn't on the list of qualified vehicles... which is total BS when it meets every single requirement listed.

Looks like that could be it from the IRS perspective.  I'll keep working on it.

Steve

[Richard230]

What the heck are Huck Cycles and Land Energy, Inc., which are approved for the rebate by the IRS? I never heard of them. 

[MVetter]

mopeds

[Richard230]

mopeds

Mopeds qualify for the IRS rebate but Zero and Energica do not?  What is up with that? I assume someone is not up on their IRS paperwork.

[EVFX]

My assumption is that it's the manufacturer's responsibility to register their models with the IRS ahead of time, so that they would have less work in the long run not having to verify everything. Or maybe it's a situation where the manufacturer has to pay to submit their models... But that doesn't seem likely. Maybe a tax pro will know more details.

Perhaps a letter detailing their own code line by line with annotations as to how the Zero meets those requirements will help. Also provide the necessary proof for each line item, probably all easily available on Zero's website.

I would certainly be on their butts for a detailed explanation as to why it was denied. If it's simply a case of not being on the qualified list I'd be pretty angry.

And I'm already salty because in my state they just announced a rebate for EVs but they must be purchased after July 1st, I got mine in March, and it's looking like the federal rebates are questionable.

[Richard230]

It looks like Energica is in the same boat.  They only explanation that I can think of is that someone at Zero and Energica dropped the ball and didn't keep up on the IRS requirement to submit verification that their electric motorcycle meets the IRS 30D(g) rebate rules. I doubt that the IRS is going to bother with an argument by a tax filer (one of hundreds of millions) that their EV meets the requirements. My thought is that the best approach would be to get on Zero's and Energica's case to submit the necessary paperwork to verify that all of their models meet the 30D(g) requirements ASAP and once that happens file an amended return like I did in 2018.

[stevenh]

I just got a trove of documentation from Zero including their correspondence with the IRS regarding eligibility, and a positive response from the IRS.  I've also outlined the requirements from the website and added a response to each line item with a link to the Zero website for specifications.  Hopefully this dump of data will do the trick.

The paperwork covers the 2018-2020 S/SR/DS/DSR/FXS/FX along with the SR/F and SR/S (2020)

And just when I was preparing to fax it to the IRS, out of ink...  (yes they want me to fax the documents)

Steve 

[Richard230]

Good luck, Steve. I hope the IRS listens to you.

[Curt]

I had no problem getting an EV rebate on my 2016 FX. But lately the IRS has become very aggressive at denying rebates. My 2019 Chevy Bolt EV, the picture of eligibility for $7500, was denied in 2020. It took two years of back-and-forth to clear up; while the IRS demands a rapid response, each of their replies takes months. Despite it not being required by IRS rules, they wanted a copy of the title. Then they wanted a copy of the complete bill of sale. Then they wanted a statement from the manufacturer regarding that particular model and year. I ended up sending them a printout from their own web site listing the vehicle as eligible. Persist, and don't take no for an answer. I figure they're saving a lot of money because many people roll over and give up.

[Richard230]

I had no problem getting an EV rebate on my 2016 FX. But lately the IRS has become very aggressive at denying rebates. My 2019 Chevy Bolt EV, the picture of eligibility for $7500, was denied in 2020. It took two years of back-and-forth to clear up; while the IRS demands a rapid response, each of their replies takes months. Despite it not being required by IRS rules, they wanted a copy of the title. Then they wanted a copy of the complete bill of sale. Then they wanted a statement from the manufacturer regarding that particular model and year. I ended up sending them a printout from their own web site listing the vehicle as eligible. Persist, and don't take no for an answer. I figure they're saving a lot of money because many people roll over and give up.

I guess the IRS figures that it is a lot easier going after the "little guy" with no accountant or lawyer to pick up a few thousand of extra dollars, than fighting it out with a big corporation, or someone like Trump, to spend years trying to capture millions of tax dollars that were never paid. 

[stevenh]

I had no problem getting an EV rebate on my 2016 FX. But lately the IRS has become very aggressive at denying rebates. My 2019 Chevy Bolt EV, the picture of eligibility for $7500, was denied in 2020. It took two years of back-and-forth to clear up; while the IRS demands a rapid response, each of their replies takes months. Despite it not being required by IRS rules, they wanted a copy of the title. Then they wanted a copy of the complete bill of sale. Then they wanted a statement from the manufacturer regarding that particular model and year. I ended up sending them a printout from their own web site listing the vehicle as eligible. Persist, and don't take no for an answer. I figure they're saving a lot of money because many people roll over and give up.

Right, on the first pass they denied my Honda Clarity as well, at least that one is now accepted.  I sent them 16 pages of documentation including title, purchase order, a copy of Zero's acceptance paperwork from the IRS along with line by line ways the SR/F passes the requirements from the website (same as you, took the text from the web-site and annotated it with links from Zero's specifications for the DS/R).  Don't worry, I'm not paying!

I'll bet they won't like my rebate claim for next years taxes either (Ioniq 5 purchased in April).

Steve