Available Incentives

• Brammo motorcycles are eligible for the recently passed 10% federal tax credit for plug-in vehicles
• Brammo motorcycles are also eligible for the state sales tax deduction on motorcycles (available through 12/31/2009 and subject to income limitations) which was included in the Federal stimulus package
• Both the tax credit and sales tax deduction should be available on your 2009 IRS Form 1040

As part of the American Recovery and Reinvestment Act of 2009 (H.R.1) two new tax incentives were included for electric motorcycles:

First: is a tax credit in Section 1142 (H.R.1, pp. 214-217) which changes IRS Code Section 30 to allow for 2 wheeled electric vehicles to be included as a “qualified plug-in electric vehicle” in the overall plug-in vehicle tax credit. These vehicles which need to be able to drive on public roads, streets, and highways, are eligible for a 10% Federal Tax Credit up to a maximum of $2,500. This is a Federal tax credit, which reduces your tax liability by the amount of the credit; eg: if you owe $5,000 to the IRS and purchase an $8,000 electric motorcycle package, you would receive an $800 credit and now owe $4,200. If you are owed a refund by the IRS, your refund is increased by the amount of the tax credit

Second: is a tax deduction for state sales taxes paid on motorcycles under Section 1008 (H.R.1, pp. 203-204). This provides all taxpayers with a deduction for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is subject to a phase-out for taxpayers with adjusted gross income in excess of $125,000 ($250,000 in the case of a joint return). In this case, since it is a Federal tax deduction, the amount comes off your adjusted gross income and reduces the amount of taxes paid based on your income tax bracket

As with all tax matters, this information does not constitute tax advice, please consult your tax advisor, attorney, or accountant for specific details on how to claim these tax benefits. The IRS will be providing final forms and instructions for these new tax incentives later in 2009.

More Information

State Specific Tax Incentives

More details on the many states with tax incentives for the Enertia coming soon…

Oregon