Retroactive E-motorcycle Federal Tax Credit

[schwankl]

Happy Hollidays ... get $1k+ back (max $2500) from your 2018 alta purchase(s):
The E-motorcycle Federal Tax Credit, also known as the 2-wheeled plug-in tax credit, was included in the tax extenders bill approved by Congress and signed into law by President Trump late on Friday December 20, 2019. It covers 10% of the purchase price.

The federal tax credit is available in all 50 US states and applies to new e-motorcycles purchased in 2018 and 2019 (retroactive).

As an added bonus, an additional tax credit was approved which covers electric motorcycle chargers with a 30% tax credit up to $1,000.

 

[VINSANITY]

Do you know how you file for the credits

 

[schwankl]

https://www.irs.gov/pub/irs-pdf/f8936.pdf
or
https://www.irs.gov/pub/irs-pdf/f8834.pdf
... talk to ur accountant or tax software help

 

[Redwolf]

Do you know how you file for the credits

You will need to file an amended return for tax year 2018.

 

[VINSANITY]

Does it apply for a purchase in 2019 - also how do you apply for the credit for the charger

 

[leeo45]

Keep in mind this only applies to vehicles manufactured as street legal vehicles (EX, EXR, SM). We may also have a paperwork challenge unless there is some ALTA archive since there is not a manufacturer to apply for vehicle certification. Here are some of the details from the IRS form:

IRS Form 8936

Qualified Two-Wheeled Plug-in Electric Vehicle

This is a new vehicle with two wheels that:

• Is capable of achieving a speed of 45 miles per hour or greater,
• Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2.5 kilowatt hours and is capable of being recharged from an external source of electricity, and
• Has a gross vehicle weight of less than 14,000 pounds.

Certification and Other Requirements

Generally, you can rely on the manufacturer’s (or, in the case of a foreign manufacturer, its domestic distributor’s) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle.

If, however, the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement.

If you purchased a vehicle and its certification was withdrawn on or after the date of purchase, you can rely on such certification even if you had not placed the vehicle in service or claimed the credit by the date the withdrawal announcement was published by the IRS. The IRS will not attempt to collect any understatement of tax liability attributable to reliance on the certification as long as you purchased the vehicle on or before the date the IRS published the withdrawal announcement.

The following requirements must be met to qualify for the credit.

• You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
• You placed the vehicle in service during your tax year.
• The vehicle is manufactured primarily for use on public streets, roads, and highways.
• The original use of the vehicle began with you.
• You acquired the vehicle for use or to lease to others, and not for resale.
• You use the vehicle primarily in the United States.
.

And here is the language from last week's funding bill which revises the dates in the tax code:

SEC. 126. 2-WHEELED PLUG-IN ELECTRIC VEHICLE CREDIT.

(a) IN GENERAL.—Section 30D(g)(3)(E)(ii) is amended by striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 2021’’.

(b) EFFECTIVE DATE.—The amendment made by this section shall apply to vehicles acquired after Decem- ber 31, 2017.

 

[privateer703]

But if you bought it in 2019 I would assume you file on your 2019 tax return. This is pretty awesome.

 

[schwankl]

what would it take to get vehicle certification from irs ? we should qualify (ex* and sm) - anyone able to help check?

 

[TCMB371]

No love for MX/MXR owners

 

[Redwolf]

No love for MX/MXR owners

They still have valid VIN number, talk to your tax preparer, it might be close enough.

Just remember, free advise is always worth every penny.

 

[Slayer]

I sent the links above to my tax guy who completed form 8936 and amended my 2018 Tax Return.
Indicated a $1500 refund (%10 of the cost). Dropping that sucker in the mail asap. See what happens.

Thank you Donald Trump, wait, no, what, OK...

 

[Redwolf]

Nice!!

 

[leeo45]

@Slayer, Any response from the IRS on the amended 2018 return? I am getting ready to go through that process for my EXR purchased in 2018. Thanks.

 

[VINSANITY]

I used Turbo Tax and typed in the serial number and purchase price and it calculated the credit - I also filed for a home charging station and got 30% back in the install cost for the 240v outlet I installed for the bike.

Nice

 

[Philip]

I used Turbo Tax and typed in the serial number and purchase price and it calculated the credit - I also filed for a home charging station and got 30% back in the install cost for the 240v outlet I installed for the bike.

Nice

Can I get 30% for the mobile charging station that I have in my motovan?

 

[VINSANITY]

I believe you could apply for the credit.

It’s 30% of the install cost up to a maximum of $1,000

 

[TCMB371]

I'm going to try my luck with my MXR. Worst case scenario, it gets denied. We'll see what happens.

 

[Trialsman]

I sent all the paperwork to the CPA for my '19 EXR so time will tell.

 

[Redwolf]

I'm waiting to hear back from my CPA also.

And to claim the charger credit, does it have to be professionally installed?

 

[VINSANITY]

Regarding the charger credit you can claim anything you put into it, materials you purchased, contractor costs, permit fees etc. - you could argue that the cost of the Alta charger should be included as well.