Federal EV rebates for 2014

[Richard230]

According to an AP article printed in my newspaper today the Senate has opened debate on a tax bill that would roll over most current IRS deductions, including the ones for electric vehicle rebates.  Unfortunately, things are not as positive in the House, where different ideas for various deductions and other tax breaks that expired last year are spinning around while its members try to figure out what will get them the most votes - or money. 

[roma258]

The latest. Sounds like shenanigans to me. They extended a bunch of credits, but "forgot" the ebike credit. Right...

As the House prepared to vote on a bill to extend dozens of tax credits for 2014, one missing credit raised eyebrows.

The omitted break for electric motorcycles would have benefited manufacturers like Brammo Inc., a company based in Ashland, Ore., the home state of Senate Finance Chairman Ron Wyden, CQ Roll Call’s Alan Ota reported (subscription).

House Ways and Means Chairman Dave Camp, R-Mich., said the omission was accidental, the result of late scrambling to put together a new package. It was not, he said, a jab at Wyden for not backing an earlier deal that House Republicans tried to build with Senate Majority Leader Harry Reid of Nevada, Ota reported.

“It was an oversight. We can’t get the score and everything together,” Camp said. “You can’t just turn on a dime.”

http://blogs.rollcall.com/energy-xtra/camp-extenders-e-bike-omission-not-a-jab/?dcz=

[littlefreak3000]

Last I checked there was never a federal ruling for motorcycle specifically. It just sums up EVs and motorcycles count as EVs. I could be wrong tho.

[Richard230]

I have applied three times over the past five years and have received the Federal tax "rebate" each time.  There is an IRS form just for new production street-legal electric motorcycles and it is already primed with the brand, model and VIN.  When you type your bike's information and purchase price into the IRS form, it will accept your application and allow you to complete the form, resulting in a 10% "rebate" off of your tax return payment.  The maximum amount that will be rebated is $2,500.

I am keeping my fingers crossed that the rebate will somehow be included in the budget bill, but I am not going to hold my breath until that happens.   

[roma258]

I have applied three times over the past five years and have received the Federal tax "rebate" each time.  There is an IRS form just for new production street-legal electric motorcycles and it is already primed with the brand, model and VIN.  When you type your bike's information and purchase price into the IRS form, it will accept your application and allow you to complete the form, resulting in a 10% "rebate" off of your tax return payment.  The maximum amount that will be rebated is $2,500.

I am keeping my fingers crossed that the rebate will somehow be included in the budget bill, but I am not going to hold my breath until that happens.   

Damn, you must cycle through e-bikes the way I cycle through...um, regular bikes. Here's hoping...

[Richard230]

I just had my taxes prepared by my accountant and according to him the EV rebate was rolled over by Congress last year and we can continue to receive the same IRS income tax rebate for an EV purchase during 2014 as in 2013.  That amounted to almost $2000 knocked off of my IRS income tax payment.      Plus, earlier this year I received a check from the CA EV rebaters for $900 and since they didn't file a 1099, this appears to be a non-taxable gift.   

You get this "credit" by filing IRS tax form 8936.

[roma258]

Got excited but then looked at the form:

The credit for qualified two- or three-wheeled plug-in
electric vehicles expired for vehicles acquired after 2013.
However, if you acquired the vehicle before 2014, but
placed it in service during 2014, you may still be able to
claim the credit for 2014. Do not report qualified two- or
three-wheeled plug-in electric vehicles acquired after
2013 on Form 8936 unless the credit is extended.

99.9% sure that the credit was not extended.

[Richard230]

That version of form 8936, with those comments, has been around all year long.  In the IRS instructions about EV credits it says that it is up to Congress to renew the EV credit and to check the latest law to verify that this has occurred before using the form to apply for a credit.  I pointed out that comment on the form instructions and my tax preparer said that Congress did renew the EV credit when they passed this year's budget bill last year. I think it is quite possible that that did occur as the IRS has a tendency to update form 8936 each year around mid-February. 

(I have some experience with this issue as this is the fourth time I have applied for the credit over the past 5 years.  The form is always quite late in being revised for the tax year.)

I am pretty sure that if the EV credit was not approved for 2014 by Congress we would have heard about it in the news by now, considering how many EV's are being sold in the U.S.  Also, I note that I still hear adds for electric cars stating that you will get a Federal tax credit of up to $7500 when you buy their brand of EV this year.

In any case, it is too late now.  My tax return is off to the IRS with the rebate form attached.  So I guess I will find out for sure in a few weeks.  The worst that could happen is that I will get a bill for $2000 some day - after having the use of the government's money for free until then.   

[littlefreak3000]

How is the credit calculated for motorcycles? Is it percentage?

[roma258]

Since I bought the bike so late in the year, I remember specifically checking into the EV credit. It was specifically excluded for motorcycles, which I remember thinking was bullshit at the time. But keep us in the loop, if it goes through, I guess it's worth a shot:

As the House prepared to vote on a bill to extend dozens of tax credits for 2014, one missing credit raised eyebrows.

The omitted break for electric motorcycles would have benefited manufacturers like Brammo Inc., a company based in Ashland, Ore., the home state of Senate Finance Chairman Ron Wyden, CQ Roll Call’s Alan Ota reported (subscription).

http://blogs.rollcall.com/energy-xtra/camp-extenders-e-bike-omission-not-a-jab/

[Richard230]

How is the credit calculated for motorcycles? Is it percentage?

You get a 10% credit directly off of your tax bill, up to a maximum of $2500 (or $7500 if you bought an electric car).  When my tax preparer was working on my tax return yesteday, he completed an on-line IRS form 8936, inputting my Zero brand, date of purchase and VIN.  Upon doing that the form program automatically filled in the rest of the form and gave me 10% of my total purchase price (which included the cost of my "power tank" and various Zero accessories) immediately as a credit toward my Federal income tax payment. 

My previous experience has been that the IRS form is sensitive to VIN numbers and if you don't have the proper VIN it will not accept the vehicle and plug it into the form. I am pretty confident that Congress decided to not make any changes in the budget bill that they passed late last year and planned to fool with the tax laws this year when the Republicans had complete control of both houses of Congress.

[Richard230]

Since I bought the bike so late in the year, I remember specifically checking into the EV credit. It was specifically excluded for motorcycles, which I remember thinking was bullshit at the time. But keep us in the loop, if it goes through, I guess it's worth a shot:

As the House prepared to vote on a bill to extend dozens of tax credits for 2014, one missing credit raised eyebrows.

The omitted break for electric motorcycles would have benefited manufacturers like Brammo Inc., a company based in Ashland, Ore., the home state of Senate Finance Chairman Ron Wyden, CQ Roll Call’s Alan Ota reported (subscription).

http://blogs.rollcall.com/energy-xtra/camp-extenders-e-bike-omission-not-a-jab/

My tax preparer was aware of that story, but he said that idea went up in smoke when the bill was finally passed.  Congress just didn't want to make any changes in the tax laws during a lame-duck session.  So they did their favorite thing - nothing.   

[roma258]

Interesting, either your tax preparer knows something we don't know or he's full of it. I have some experience reading bills, so I pulled up the actual renewal bill:
https://www.congress.gov/bill/113th-congress/house-bill/5771/text

I don't see anything striking down motorcycles, which kind of makes me wonder what the whole hubub was about. You'd think Zero and Brammo would be on top of it, but we've heard nothing. So what was it that he Wyden all worked up?

[Richard230]

My guess is that Dave Camp wanted to stick it to Ron Wyden just for fun and to irritate him.  No doubt the Senate version of the bill had that credit put back in and the conference committee decided that it wasn't worth fighting over and passed the final bill with the motorcycle credit back in. (Assuming that it was ever out to begin with. Camp might have just been blowing smoke to make a point in a news burp and perhaps the version of the bill that came out of the House didn't actually drop the credit.) 

[Richard230]

I received my electric motorcycle purchase credit from the IRS via a direct deposit of my tax refund into my checking account about one week after my return was electronically filed and without any changes to my tax liability.  So the IRS computer gate-guard is letting the tax form 8936 go through and is allowing the 2014 electric motorcycle purchase credit. Which is not to say that the IRS couldn't come back some day and take the money back, but from what I hear they have enough tax return review problems to keep them busy for many, many years.  So I figure that the federal government helped me pay for the purchase of my 2014 Zero S 

But who knows what will happen with the tax code for this year's purchases.