AMA: Stimulus will save consumers money

Deductions on motorcycles purchased by Dec. 31, 2009

By Motorcycle.Com Staff, Mar. 19, 2009
Prospective motorcycle owners will save money on bikes they purchase before the end of the year, says the American Motorcyclist Association.

The AMA says the American Recovery and Reinvestment Act, the landmark $787 billion stimulus package President Barack Obama signed into law on Feb. 17, will likely provide tax deductions for on-road and dual-sport motorcycles as well as scooters and mopeds. It is also unclear whether off-road motorcycles are included as well.

“While we are awaiting final language from the Treasury Department, we believe that many motorcycles and scooters will qualify,” says Ed Moreland, AMA vice president for government relations.

Motorcycles were a last minute addition to the list of vehicles eligible for tax deductions in the stimulus package. Moreland credits Harley-Davidson as well as the AMA’s membership for convincing legislators to provide the same tax deductions for motorcycles as for automobiles, like trucks and recreational vehicles.

“We have AMA members to thank, because they responded to our appeal to contact their legislators to make sure that motorcycles were part of this inclusive and equitable solution,” says Moreland.

The AMA says the sales and excise tax deductions will apply to motorcycles purchased between Feb. 17 and Dec. 31, 2009 with a gross vehicle weight under 8,500 lbs. and costing less than $49,500. Individuals earning less than $125,000 (or $250,000 for joint filers) will be eligible for the deduction. Individuals earning between $125,000 and $135,000 ($250,000 and $260,000 for joint returns) will be eligible for a lesser deduction.

“This victory indicates that our legislators are starting to recognize how motorcycles reduce traffic congestion, provide efficient use of limited parking, lessen the impact on our roads and bridges and help reduce our dependence on foreign oil,” says Moreland.

It still remains to be decided whether the tax deductions apply only to 2009 model or if unsold new models from previous years or yet-to-be-released 2010 models. The legislation also provides for a 10% tax credit up to $2,500 on street-legal electric motorcycles purchased by December 2011.

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