Do Electric Motorcycles Qualify For Tax Credits?
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Do Electric Motorcycles Qualify For Tax Credits?

photo of man wearing helmet jacket and gloves riding an blue electric motorcycle on paved road near mountains

There had previously been federal tax credits for buying an electric motorcycle, but those have been eliminated with the Inflation Reduction Act. Electric motorcycle prices have been a barrier of entry for many would-be buyers, and the incentives that were in place encouraged sales.

“The AMA was very disappointed to see the entire electric motorcycle tax credit provision not only ignored but actually replaced in the bill and worked hard with the electric motorcycle industry to save the program,” said Michael Sayre, Director of Government Relations for the American Motorcyclist Association. “Ultimately, by the time this bill was introduced, most negotiations had already happened and very few of the many amendments that were proposed were agreed to before passage.”

The Inflation Reduction Act effectively removes the now-expired electric motorcycle tax credit system entirely. This is a major departure from the Build Back Better plan, Sayre notes, “which also included a tripling of the electric motorcycle incentive to up to 30% of the purchase price with a cap of $7,500.”

Charging a Zero SR/S electric motorcycle using a J1772 plug.

Some companies are trying to provide customers with other incentives. Zero Motorcycles is offering their own “instant incentives” program, knocking up to $3000 off their top models, including SR/S and SR/F.  On the lower-end of the price spectrum, bikes like the FXE will get about $1250 off, but Zero dealers also have incentives that can add up to another $1250 on any model.

Some states offer their own tax credits for electric motorcycles. Illinois is offering the most, at $1500, where California offers a Clean Vehicle Rebate Project (CVRP) of $750. California’s San Joaquin Valley offers an additional $1000 on top of that for residents.

State electric motorcycle tax credits:

  • California: $750 (Other credits also available in certain areas)
  • Pennsylvania: $500
  • Illinois: $1500
  • Florida (Orlando): $200
  • Texas (Denton): $300 
  • Texas (Austin): $600

Arizona has a reduced vehicle license tax. There are also many other programs in states or even municipalities, so check on what is available near you.


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4 Responses

  1. Washington State made a point of excluding them from the program.
    The Zero DSRX is extremely overpriced, MSRP of 26k and listing for that too. It’s range is a shadow of what the original DSR enduro frame was capable of, some say it’s because of the newer motors and its reduced efficiency.

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