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[af1 racing]

Approved in subcommitee, just waiting on full Senate approval.

http://www.roadracingworld.com/news/article/?article=49263

http://motorsportsnewswire.wordpress.com/2012/08/05/electric-motorcycle-tax-credit-may-be-extended-0805124/

AF1 Racing
Zero Motorcycles - Austin, TX

[dkw12002]

So this would be a rebate from the Federal Govt? So potentially, someone in say California could double up on rebates from both the state and the feds? Would you apply for it after you bought the bike or would dealers handle it and pass the savings onto buyers since it would apply to all electric vehicles sold? This could be very good for sales. I'm hoping it doesn't turn political. Really though, it's great for business and the environment so there's something for everyone to like, except maybe some taxpayers. It would get me interested in a new bike.

[af1 racing]

yes, in some states you could double up.  Take the Federal money and the State money.  Colorado seems to have the best State deal right now.

It's not clear how the new Federal rebate will be handled--consumer side or dealer side.

[trikester]

I doubled up when I bought my 2010 DS. A $1500 cash rebate from the state and an income tax credit of $1100 from the feds. However, when I bought the 2012 DS the state rebate had been lowered to $900 and the federal tax credit had gone away completely for lower cost electrics (like ZERO's) 

If the fed tax credit is brought back I'll ask my tax man if I can still qualify, having bought the 2012 DS in February.

[protomech]

The earlier federal rebate credit (thanks Brammofan) for electric motorcycles expired on Dec 31 2011 - for all electric motorcycles, not just low-cost bikes.

[ColoPaul]

If the fed tax credit is brought back I'll ask my tax man if I can still qualify, having bought the 2012 DS in February.

You should be able to qualify.  I think the legislation is an extension of the 2011 fed tax credit to 2012 (emotos purchased in 2012).


To anyone who took advantage of it in 2011;  do you know if the formula is
  fed tax credit = purchase price * 0.10
Or is it
  fed tax credit = (purchase price - state tax credits) * 0.10

[protomech]

I believe the federal tax is computed before the state credits. The state credits might use a post-federal credit price, but probably not.

[Brammofan]

Just to clarify, this is a credit, not a rebate.  Assuming it passes, you would apply it to your tax liability for the calendar year in which you purchased your vehicle.  You don't get a rebate check.  Although, if you are due a refund from the IRS because of overwithholding, it would increase the amount of that refund. 

[trikester]

Yes, I did mention in my post that it was a Federal income tax credit that I received.

Trikester

[Brammofan]

Yes, I did mention in my post that it was a Federal income tax credit that I received.

Trikester

I know - there was another culprit involved.  Plus, I have found that no matter how many times you mention that it's a credit, people still think it's a rebate or a deduction or that Barack is going to show up on their doorstep with a briefcase full of cash.

[trikester]

However, it becomes the same as cash, I got $1100 more in my tax rebate. As Ben Franklin said: "A penny saved is a penny earned".

[Electric Terry]

However, it becomes the same as cash, I got $1100 more in my tax rebate. As Ben Franklin said: "A penny saved is a penny earned".

A penny saved is 1.4 pennies earned depending on what tax bracket you are in.

[JuicyBurger]

I paid full for everything, didn't even get a break on the vehicle license tax that I thought I was going to! If anyone knows of any sort of tax credits or rebates for Arizona they should probably let me know... hehe

[trikester]

A tax credit is not like a tax deduction. A credit takes that actual amount of money directly off of what you have to pay. An $1100 credit, like I got, reduced my tax bill by $1100, thereby putting $1100 directly back into my wallet. It's like a delayed cash rebate. It doesn't change with bracket. Of course, if you didn't owe at least $1100 then it wouldn't come to you.

[ColoPaul]

So the tax formula here in Colorado takes into account the possibility of a Federal tax credit;  and the formula is non-linear and not obvious.  I worked out the numbers today.

Bottom line:
             LIST          Cost after Colo Credit         Cost after Colo+Fed Credit(if approved)
SZF6,    $11500               $6621                                 $6334
SZF9,    $14000               $8000                                 $6896

So the 10% Fed Credit only saves me $290 (I got the ZF6).
If I had known this, I would have gotten the ZF9 instead of the ZF6!

Something for future 2012 Colorado Zero buyers to think about....