Scooters, mopeds, dual-sport bikes could be eligible for tax deduction
Vehicles eligible for the motorcycle tax deduction added to the American Recovery and Reinvestment Act are likely to include on-road and dual-sport motorcycles, as well as motor scooters and mopeds, according to the American Motorcyclist Association (AMA).
Ed Moreland, AMA vice president for government relations, believes that although they are still waiting for the final specifications to the plan, most motorcycles and scooters will be eligible. The law also includes a 10 percent tax credit up to $2,500 for street-legal electric motorcycles purchased by December 2011.
The sales and excise tax deduction applies to motorcycles purchased between Feb. 17-Dec. 31, with a GVWR (gross vehicle weight rating) less than an 8,500 lbs., and costing less than $49,500. Individuals can take the deduction if they make less than $125,000, or $250,000 for joint filers. The deduction is phased out for taxpayers with income between $125,000-$135,000, and for a joint return $250,000-$260,000. Individuals do not have to itemize to claim the deduction.
