US Senate Ponders Electric Motorcycle Tax Credit Extension

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A pivotal moment on Capital Hill for the electric motorcycle segment, as the US Senate Finance Committee has green-lit a bill that would extend tax credits for on-road electric vehicles, which include electric motorcycles. The measure now goes to the full body of the US Senate for voting, and if passed, then$2,500 in tax credits will continue to be given on electric vehicle purchases.

“Without an extension of this tax credit for the purchase of electric motorcycles, we could be stifling this innovative new industry in its infancy,” said Senator Ron Wyden (D-Oregon). A testament to the lobbying power of electric motorcycle manufacturers, Sen. Wyden is at least correct in his assessment that the federal and state subsidies available to electric vehicle manufacturers create a tipping-scale advantage for this fledgling industry.

With cost being a huge hindrance to the adoption of electric motorcycles, the ability for companies like Brammo and Zero to get tax breaks from governments for consumers, at both the state and national level, is a huge advantage to making electric motorcycles viable in the eyes of potential buyers.

While the Senate still has to vote on the measure, its passage would be a huge boon from Brammo, as the Oregonian company is set to bring its Brammo Empulse R electric street bike to market later this year. If the US Senate fails to pass the federal tax credit for electric vehicles, the Empulse R’s $18,995 price tag is going to look mighty steep — not to mention it could very well be a death blow to the precariously perched Zero Motorcycles.

Source: AMA