Federal Tax Incentive
Great news! The complete 2016 model line of Zero Electric Motorcycles are eligible for a 10% federal tax credit for plug-in vehicles. The tax credit was included in the “last minute” tax extenders bill approved by Congress on Friday December 18 and signed into law by President Obama. Zero Motorcycles dealers, customers and fans weighed in as well, urging Congress to support the extension of the plug-in tax credits.
The signed bill includes the following provisions:
- Extends the EV infrastructure tax credit from the beginning of 2015 until the end of 2016.
- In the case of the 2-3 wheeled plug-in tax credit, this covers 10% of the purchase price, up to $2,500 maximum, and applies to the complete 2016 product line.
- Zero S, Zero SR, Zero DS, Zero DSR, Zero FX and Zero FXS all qualify for the incentive.
- These tax credits are retroactive and apply to electric motorcycles and EV chargers purchased in 2015. All new Zero models purchased in 2015 or 2016 are eligible for the tax credits.
Arizona State Tax Incentive
The state of Arizona has the following tax incentives for an Alternative Fuel Vehicle (AFV) - AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas:
- Reduced Alternative Fuel Vehicle (AFV) License Tax
The AFV license tax is $4 for every $100 in assessed value. During the first year after initial registration, the AFV's assessed value is 1% of the manufacturer's base retail price (compared to 60% for conventional vehicles). For each succeeding year, the original value of the AFV is reduced by 15%. The minimum amount of the annual AFV license tax is $5. This means that your Zero Motorcycle will cost you about $8/year to register.
- Alternative Fuel Vehicle (AFV) Parking Incentive
An individual driving a dedicated AFV may park without penalty in parking areas that are designated for carpool operators, provided the vehicle is using alternative fuel.
- Alternative Fuel Vehicle (AFV) High Occupancy Vehicle (HOV) Lane Exemption
Dedicated AFVs are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display an AFV special plate or the Clean Air - Blue Skies Energy Efficient license plate, which are available from the Arizona Department of Transportation Motor Vehicle Division (MVD). All motorcycles qualify for the HOV lane exemption...but it's good to know that our 4-wheeled electric counterparts receive special consideration, too.