Buying an electric motorcycle in 2021 just got cheaper with more US tax credits

As electric motorcycles grow in popularity, American riders can find substantial savings this year in the form of extended tax credits for e-motorcycles.

10% tax credit on electric motorcycles

It was initially feared that a US federal tax credit for 10% of the purchase price of an electric motorcycle would expire at the end of 2020.

But in a pleasant surprise for the industry, the tax credit was extended until the end of 2021.

The credit isn’t as large as the federal tax credit available for many four-wheeled electric cars, but it can still add up to big savings.

In order to qualify, the electric motorcycle has to be capable of achieving a speed of over 45 mph (72 km/h). That rules out a lot of the electric mopeds that we’ve covered, but may still allow for some low-power electric motorcycles such as the 46 mph (74 km/h) CSC City Slicker. You’ll want to speak to your local motorcycle dealer to confirm whether their models are eligible for the federal tax credits.

The 10% tax credit is also limited to a maximum of $2,500. That means you shouldn’t expect an even $3K credit for a $30K Harley-Davidson LiveWire electric motorcycle.

Zero Motorcycles, the largest electric motorcycle dealer in the US, played a large role in lobbying for the extension of the tax credit through 2021.

As Zero Motorcycles CEO Sam Paschel explained:

The electric motorcycle industry is rapidly responding to our country’s need for affordable and environmentally responsible transportation, and Zero Motorcycles is excited to combine our extreme passion for motorcycles with something that benefits everyone. These tax credits represent an investment in a cleaner energy future, and also effectively create jobs in the ever-growing electric vehicle industry.

Zero Motorcycles offers a wide range of electric motorcycles with starting prices from around $10K to $20K across the company’s diverse model line.

Other smaller manufacturers are also entering the 45+ mph electric motorcycle market.

Electric bicycle company SONDORS recently unveiled an 80 mph (130 km/h) commuter electric motorcycle known as the SONDORS Metacycle. It is slated for delivery later this year and is already available for pre-order at its $5K MSRP.

While the current 10% federal tax credit has only been extended through the end of 2021, an EV-friendly Biden administration could spell good news for the expansion of such tax credits in the future.