How to get Tax Credits on your next PEV purchase

How to get Tax Credits on your next PEV purchase

Uncle Sam's Going Electric

If you've ever watched late night television and been bombarded by car dealership commercials, you probably know that the government offers tax incentives to buy an Electric Vehicle. What you may not know is those credits are now being extended to electric bike and scooter buyers as well. This comes as major news as the PEV market is starting to gain traction in the US much like its European and Asian counterparts.

This credit does have some strings attached however. Luckily, the Build Back Better Act that was recently passed through the US House of Representatives has clearly defined the pricing and performance metrics PEVs will need to qualify for credit. This news has huge potential impacts for individuals and our planet as it further incentivizes buyers to consider PEVs instead of a traditional gas powered commute. In Europe, for instance, a study by Dillon Fitch PHD (University of California) found that PEVs have created a reduction in urban area car trips by upwards of 30-50% while saving commuters thousands of dollars annually. Another study in the US cited that if 15% of car trips were replaced with PEVs, the carbon emissions would drop by 12%.

If altruism and earthly stewardship isn't what motivates you to get out of bed in the morning, maybe the hefty tax credit available to you will. Under this new legislation up to 30% of your purchase price is eligible as a credit

As you may recall earlier, I did clearly say there are some strings attached so let's break those down. The strings can be broken up into 3 categories; PerformanceRetail Price, and Buyer Household Income.

String 1: Performance

If you're like Maverick in Top Gun and you have "a need... a need for speed" then you're in luck. Performance wise, your PEV in order to qualify for the credit must have an advertised maximum speed in excess of 45mph and designed primarily for road usage. To help those that don't want to scour the internet looking for models that qualify, we've compiled a list for our readers at the bottom.  

String 2: Retail Price

The tax credit available on any PEV is up to 30% of the total purchase price under $5,000.00 (for a maximum credit of $1,500) This credit however begins to phase out starting at $5,000 and ending at the $8,000 price point.

String 3: Buyer House Hold Income

The baseline income cap for the credit is $75,000 for an individual, $112,500 for a head of household, and $150,000 in the case of a joint return. The credit gets reduced by $200 for each $1,000 that a taxpayer's gross income exceeds those caps. 

 Okay, so let's be honest with ourselves, it's still the government and there will always be strings attached, but if you've done your research you will be able to maximize the credit on your shiny new PEV. If you're less inclined to go down the internet rabbit hole alone, below is a list of scooters that can reach the speeds necessary to qualify for the tax rebate and are readily available in the US market.

1. Rion RE90 (75MPH)

2. VSETT 11+ Super 72 (65MPH)

3. ZERO 11X (62MPH)

4. Kaabo Wolf King GT (61MPH)

5. Dualtron X11 (60MPH)

6. Kaabo Wolf King (59MPH)

7. Nami Burn-E (58MPH)

8. Dualtron Thunder (58MPH)

9.  VSETT 11+ (53MPH)

10. Turbowheel Phaeton (54MPH)

11. Blade GT+ (52MPH)

12. Dualtron Storm (51MPH)

13. Dualtron Thunder (50MPH)

14. VSETT 10+ (50MPH)


$ecret $anta 2023