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Tax break for electric bicycles in the fiscal cliff!

Balatarin

Did you know there are electric bicycles?!  I didn't know that much less there are tax credits for it! 

 

When the politicians in Washington were passing the fiscal cliff bill with salam and salavat and belting "ya Ali molaye man" (oh Ali, my leader) while casting their vote, one of the rare tax breaks awarded in this hotly contested and negotiated bill was to extend the tax credit for  “2- or 3-wheeled plug-in electric vehicles.” in Section 403 of the bill!

 

I want one of those!  Where do I get one and how much is it?  The tax credit is up to $2,500 or something like that, read the bill for the fine print.  The bicycle sure looks nifty, doesn't it?  Unlike the electric cars I think there can be a big market for it if it can be plugged in any room with a standard plug.

Balatarin

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Persa

Persa http://iranian.com/main/member/jeesh-daram.html

There are many manufacturers of electric bikes and most of their products are too heavy and cumbersome for carrying say from your doorstep into the house or god forbid second floor apartments. But there are some privately manufactured ones in California that are slick, light and very chic. One needs to search and test several before committing to one. iGo is one that I have seen their ads, take a look:
http://www.igoelectric.com/?gclid=CImU4talyrQCFQinPAodfFYAxg

At this point I wonder if you can deduct the entire $2500 or does it have to be depreciated / amortized during the life of a bike e.g five years?

EsfandAashena

Esfand Aashena http://iranian.com/main/member/esfand-aashena.html

Wow those look pretty cool. They are not answering the pricing questions and I wonder how much they are. Besides they say the warranty on the battery is only 6 months and it can be charged about 750 times and you can go about 30 miles or so with a full charge. They also don't say how much is the battery.

As far as the $2500 tax credit, I don't know if it's actually that much, the fine print of the bill is not surprisingly legalese and not understandable. I'll post the long section 403 in another comment.

EsfandAashena

Esfand Aashena http://iranian.com/main/member/esfand-aashena.html

1 SEC. 403. EXTENSION OF CREDIT FOR 2- OR 3-WHEELED
2 PLUG-IN ELECTRIC VEHICLES.
3 (a) IN GENERAL.—Section 30D is amended by add4
ing at the end the following new subsection:
5 ‘‘(g) CREDIT ALLOWED FOR 2- AND 3-WHEELED
6 PLUG-IN ELECTRIC VEHICLES.—
7 ‘‘(1) IN GENERAL.—In the case of a qualified
8 2- or 3-wheeled plug-in electric vehicle—
9 ‘‘(A) there shall be allowed as a credit
10 against the tax imposed by this chapter for the
11 taxable year an amount equal to the sum of the
12 applicable amount with respect to each such
13 qualified 2- or 3-wheeled plug-in electric vehicle
14 placed in service by the taxpayer during the
15 taxable year, and
16 ‘‘(B) the amount of the credit allowed
17 under subparagraph (A) shall be treated as a
18 credit allowed under subsection (a).
19 ‘‘(2) APPLICABLE AMOUNT.—For purposes of
20 paragraph (1), the applicable amount is an amount
21 equal to the lesser of—
22 ‘‘(A) 10 percent of the cost of the qualified
23 2- or 3-wheeled plug-in electric vehicle, or
24 ‘‘(B) $2,500.
25 ‘‘(3) QUALIFIED 2- OR 3-WHEELED PLUG-IN
26 ELECTRIC VEHICLE.—The term ‘qualified 2- or 3-
66
MAT12564 S.L.C.
1 wheeled plug-in electric vehicle’ means any vehicle
2 which—
3 ‘‘(A) has 2 or 3 wheels,
4 ‘‘(B) meets the requirements of subpara5
graphs (A), (B), (C), (E), and (F) of subsection
6 (d)(1) (determined by substituting ‘2.5 kilowatt
7 hours’ for ‘4 kilowatt hours’ in subparagraph
8 (F)(i)),
9 ‘‘(C) is manufactured primarily for use on
10 public streets, roads, and highways,
11 ‘‘(D) is capable of achieving a speed of 45
12 miles per hour or greater, and
13 ‘‘(E) is acquired after December 31, 2011,
14 and before January 1, 2014.’’.
15 (b) CONFORMING AMENDMENTS.—
16 (1) NO DOUBLE BENEFIT.—Paragraph (2) of
17 section 30D(f) is amended—
18 (A) by striking ‘‘new qualified plug-in elec19
tric drive motor vehicle’’ and inserting ‘‘vehicle
20 for which a credit is allowable under subsection
21 (a)’’, and
22 (B) by striking ‘‘allowed under subsection
23 (a)’’ and inserting ‘‘allowed under such sub24
section’’.
67
MAT12564 S.L.C.
1 (2) AIR QUALITY AND SAFETY STANDARDS.—
2 Section 30D(f)(7) is amended by striking ‘‘motor ve3
hicle’’ and inserting ‘‘vehicle’’.
4 (c) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to vehicles acquired after Decem6
ber 31, 2011.

Persa

Persa http://iranian.com/main/member/jeesh-daram.html

I saw a few in during Earth Day 2012 and it was around $5,000-$10,000 but by now probably even less. Human beings have a long way to invent a good battery, we are still in bronze age when it comes to battery life. One of these days we will hear in the news (Press TV) that a 13 years old Iranian girl invented a nuclear battery in her kitchen and all of that while holding her hejab with one hand and the centrifuge with the other!

EsfandAashena

Esfand Aashena http://iranian.com/main/member/esfand-aashena.html

Yes that'd be good! As long as get something done! That's a lot of money you can buy a good Vespa scooter with that. If they can come down to about $1,000 - $2,000 it'd be ok.

They had put engines on bicycles decades ago and you see them every now and then in these pawn shop TV shows where they sell junk and antiques so the idea is not new but the battery technology is good and can take off. Besides it's not noisy like an engine, or dirty with gas and oil and stuff. Remember those Peugeot or Rex pedal motor cycles?!

Maybe they can make the batteries removable like the car stereos in Iran where you take them off every night to deny the would be thieves!