Triumphrat

Dragonlady

Stimulus bill offers tax credit for motorcycle purchases


Wednesday February 18, 2009

The economic stimulus bill will provide a tax credit for the purchase of motorcycles, which wasn't included in prior bills, according to a press release from the American Motorcyclist Association (AMA).

The tax credit will not only help riders, but motorcycle retailers as well, says Ed Moreland, AMA Vice President for Government Relations.

"When it appeared that motorcycles were going to be overlooked in this bill," he noted in the release, "the AMA and the association's members, along with others, took our case straight to Capitol Hill and persuaded lawmakers that this was the right decision."

Motorcycles are included as "qualified vehicles" in Section 1008 of the legislation. Those purchasing a new motorcycle will be able to deduct the sales and excise taxes on their 2009 tax returns. Prior to the current bill, the deductions only applied to the purchase of new cars and light trucks.

Moreland added, "This victory is particularly gratifying because it represents a community-wide effort to elevate motorcycles as a recognized and viable means of transportation in America."

Doug48843

That's excellent news! Eases the pain a bit for the purchase this year and makes me happy I'm an AMA member.

jjolly3

That is good news. Are there details as to whether it must be street legal or not, and also any restrictions on displacement?

Thank you

Garyhjd

Any new motorcycle bought after February 17, 2009 in the USA qualifies to have any sales tax you pay on it deducted from your income. This is not a tax credit, but a deduction.

As far as off road motorcycles go, I don't see why they wouldn't count. The act references the 49 CFR 571.3 which simply describes a motorcycle as having two wheels that travel on the ground. But you should consult with your own tax advisor about this. As I may play a lawyer in real life, but I am not your lawyer.

Relevant portion of "American Recovery and Reinvestment Act of 2009" follow:

SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND
EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR
VEHICLES.
(a) IN GENERAL.—Subsection (a) of section 164 is amended
by inserting after paragraph (5) the following new paragraph:
‘‘(6) Qualified motor vehicle taxes.’’.
(b) QUALIFIED MOTOR VEHICLE TAXES.—Subsection (b) of section
164 is amended by adding at the end the following new paragraph:
‘‘(6) QUALIFIED MOTOR VEHICLE TAXES.—
‘‘(A) IN GENERAL.—For purposes of this section, the
term ‘qualified motor vehicle taxes’ means any State or
local sales or excise tax imposed on the purchase of a
qualified motor vehicle.
‘‘(B) LIMITATION BASED ON VEHICLE PRICE.—The
amount of any State or local sales or excise tax imposed
on the purchase of a qualified motor vehicle taken into
account under subparagraph (A) shall not exceed the portion
of such tax attributable to so much of the purchase
price as does not exceed $49,500.
‘‘(C) INCOME LIMITATION.—The amount otherwise taken
into account under subparagraph (A) (after the application
of subparagraph (B)) for any taxable year shall be reduced
(but not below zero) by the amount which bears the same
ratio to the amount which is so treated as—
‘‘(i) the excess (if any) of—
‘‘(I) the taxpayer’s modified adjusted gross
income for such taxable year, over
‘‘(II) $125,000 ($250,000 in the case of a joint
return), bears to
‘‘(ii) $10,000.
For purposes of the preceding sentence, the term ‘modified
adjusted gross income’ means the adjusted gross income
of the taxpayer for the taxable year (determined without
regard to sections 911, 931, and 933).

Baltobonneville

I mentioned this a week ago in Biker Hangout, but it's worth repeating. Unfortunately, or fortunately, I already have the motorcycle I want. I might replace my 11-year-old car this year though. :

http://www.triumphrat.net/biker-hang...torcycles.html

__________________
Marty
2005 Bonneville Blue 790cc, AI removed, Staintunes RC, Unifilter, no snorkel, 118/40/Thrux needle/1 shim/3 turns, tachometer, Ikon 7610s in back, Ricor Intiminators in front, Pirelli Sport Demons, D9 gauge panel.