Two US senators have announced that they are planning to introduce a legislation in the Senate that has specifically been designed to expand EV tax credits to qualifying electric motorcycles. Senator Tammy Baldwin from Wisconsin and Senator Bob Casey from Pennsylvania said they wanted to expand available tax credits to buyers of qualifying electric motorcycles in the U.S., and to achieve that aim they would introduce the Electric Motorcycle Parity Act of 2023 in the U.S. Senate sooner than later.

Before the end of 2021, some electric motorcycle models were eligible for tax credits or incentives. Unfortunately, those tax credits expired at the end of 2021. While some states individually kept on offering some tax credits or incentives for a handful of electric motorcycles, but no incentive is available for electric motorcycles at the federal level.

The Electric Motorcycle Parity Act of 2023, if approved, would make EVs with fewer than four wheels, including two-wheelers like electric motorcycles and possibly even three-wheeled electric vehicles, eligible for the Joe Biden-led federal government’s clean vehicle tax credits.

It is worth-noting here that the federal government’s Inflation Reduction Act (IRA) of 2022 awards tax credits of up to $7,500 to customers. Of course, the tax credits are available only if the vehicle as well as the taxpayer meet certain conditions and requirements. The amount of the tax credit is determined based on when the EV is placed into service. In simple words, credit is determined based on when a person takes delivery of it, not when he/she purchased it.

The list of requirements to qualify for the tax credit also includes that the EV is purchased for personal use in the U.S., and not for reselling it to some other person or entity. Additionally, there is also an Adjusted Gross Income requirement, which varies based on circumstances. To qualify for the aforementioned tax credits, a taxpayer’s Adjusted Gross Income shouldn’t exceed $300,000 for married couples who file for tax return jointly; $225,000 for heads of households; and $150,000 for all other filers.

Senators Baldwin and Casey are quite hopeful that the Electric Motorcycles Parity Act will be able to garner required support from lawmakers and others. In fact, it has already been endorsed by two unions, viz. the United Steelworkers (USW) and the International Association of Machinists & Aerospace Workers (IAMAW).