Tax Credit Makes Electric Motorcycles More Accessible For All
Motorcycles have long been some of the most classic vehicles in the United States, not only functional but fashionable and emblematic of a bygone era. People often think of motorcycles in terms of rebels without causes, while at the same time not thinking about the deficits that come with more old-fashioned motorcycles. A lot of people have motorcycles that are quite outdated, with half of all motorcycles registered in 2018 standing at 11 years old at least. Not only do these motorcycles quite often perform more poorly than they once did; they also can be bad for the environment and even dangerous to ride. But people understandably still want to enjoy motorcycles. This is just one reason why there has recently been a rise in popularity of the electric motorcycle.
A comparatively recent creation, the electric motorcycle offers many different benefits to riders, and as such has been gaining fans for years. Additionally, there has been a concentrated movement to make electric motorcycles not only more accessible to motorcyclists but more accepted as alternates as well. Therefore, it should come as no surprise that Americans are currently being offered tax credits for choosing electric motorcycles over traditional motorcycles.
The Motorcycle Tax Credit
Introduced earlier, a 10% tax credit on electric motorcycles was initially expected by many to expire at the end of 2020. The tax credit specifically accounted for 10% of the purchase price of electric motorcycles, and has recently been extended through the end of 2021, perhaps in part response to the currently struggling American economy. The tax credit can be connected in some ways to the tax credit that is currently being offered for the purchase of electric cars. Right now, the tax credit for electric cars is larger than the tax credit for electric motorcycles. But nonetheless, a 10% tax credit is still significant. it can create major savings for buyers, and for that matter make electric motorcycles more accessible for the masses.
There are, as with any tax credits, certain qualification standards that must be met before the electric motorcycle tax credit can be applied. Firstly, the electric motorcycle in question must be capable of reaching speeds of at least 45 miles per hour. The reason why this standard exists is so that most electric mopeds can be excluded from the tax credit. Although electric mopeds have their own values, they are not the same types of vehicles as electric motorcycles and should not be treated as such. At the same time, lower power electric motorcycle scan still qualify under this standard, with many of them reaching little more than 46 miles per hour. Of course, it’s important that you speak with your motorcycle dealer before committing to a certain motorcycle, as some of them may more easily reach these standards than others.
Secondly, you need to consider the price of the electric motorcycle that you’re considering. The 10% tax credit can be applied to an electric motorcycle of any price, but it’s not going to equate to exactly 10% for every motorcycle. Rather, there is a cap of $2,500 to keep in mind. Therefore, if an electric motorcycle costs $30,000, the tax credit will still cut off at $2,500.
The reason why the tax credit was extended at all is largely thanks to Zero Motorcycles, the largest electric motorcycle dealer in the U.S. Zero Motorcycles lobbied strongly for the tax credit to be extended for American buyers, explaining that the tax credit offers a benefit for everyone. Not only is it easier for people to buy electric motorcycles with the tax credit; it’s also better for the environment if more people are using electric motorcycles. Obviously, Zero Motorcycles has a stake in the electric motorcycle tax credit stimulating sales, offering a range of electric motorcycles priced anywhere from $10,000 to $20,000.
But Zero Motorcycles will soon be seeing more competition in the electric motorcycle market. SONDORS, an electric bicycle company, recently revealed the creation of its 80 mile per hour electric motorcycle, the SONDORS Metacycle. Available for pre-order at a $5,000 MSRP, it enters a market that can appeal to people seeking more affordable vehicles, as well as those with bigger estates that would like to add more affordable and environmentally friendly motorcycles to their fleets. Right now, married couples with estates worth over $10,860,000 and individuals with estates valued at over $5,430,000 must accept that any amount in excess will be subject to estate taxes. Therefore, the benefits offered through the electric motorcycle tax credit cannot be ignored. But the overall advantages of using these motorcycles are manifold, extending beyond that tax credit.
The Additional Benefits of Using Electric Motorcycles
Obviously, one of the biggest benefits of electric motorcycles is shared by electric cars. That is specifically its environmental friendliness. Rather than using typical petroleum fuel, and producing more carbon emissions and other types of pollution, electric motorcycles are electrically powered and therefore much cleaner. The more we use electric vehicles, the more the demand for fossil fuels will decrease.
Furthermore, electric motorcycles are easier to maintain than traditional motorcycles. Their engines are much less intricate and therefore less likely to fail. While gas engines involve a great amount of fluids, electric motorcycle engines do not, and therefore it’s harder for something to go seriously wrong with them.
Motorcycles, just like cars, are subject to a great deal of use. Every year, American drivers spend an average of 17 hours per year hunting for parking spaces alone, adding up to $345 per driver in wasted time, fuel, and emissions. Not only are electric motorcycles more environmentally friendly and easier to maintain; they’re also cheaper outright. You’re less likely to spend an exorbitant amount of money on electric motorcycles, and they’re cheaper to keep fueled overall. They’re great investments without the tax credits, but the tax credits themselves take them to the next level.
Although the long term popularity of electric motorcycles remains to be seen, one thing is clear: the tax credit will make it much easier for people to take advantage of these unique vehicles.