Looks like motorcyclists will benefit from economic stimulus bill.

[scubasteveRR]

Looks like motorcyclists will benefit from economic stimulus bill.

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Language that provides a tax credit for the purchase of a motorcycle has been added to the current economic stimulus bill, the AMA reports. The AMA, working in conjunction with other stakeholders, worked diligently to secure the motorcycle provision within the measure. President Obama is expected to sign the bill into law shortly.

"This inclusive and equitable solution will provide much-needed relief to riders, as well as to those who sell motorcycles," said AMA Vice President for Government Relations Ed Moreland. "When it appeared that motorcycles were going to be overlooked in this bill, the AMA and the Association's members, along with Harley-Davidson and others, took our case straight to Capitol Hill and persuaded lawmakers that this was the right decision."

Moreland added that motorcycle riders are just as likely to have been hit hard by the economic downturn as those who buy automobiles and light-duty trucks. Moreover, motorcyclists typically purchase new bikes, apparel, vehicle servicing and aftermarket equipment from local dealers that are family-owned small businesses.

Specifically, motorcycles are included as "qualified vehicles" in Section 1008 of the legislation. Those purchasing a new motorcycle will be able to deduct the sales and excise taxes on their 2009 tax returns. Prior to the actions taken by the AMA and others, the deductions only applied to the purchase of a new car or light truck.

"We want to thank all motorcyclists who took the time to contact their elected officials," said Moreland. "This victory is particularly gratifying because it represents a community-wide effort to elevate motorcycles as a recognized and viable means of transportation in America. Motorcycles are vital to the reduction of traffic congestion, provide efficient use of limited parking, have far less impact on our roads and bridges, and contribute significantly to our nation's efforts to consume less fuel. Our success today clearly indicates that our legislators are listening."

[Eddie]

Sweet. I wonder if I can keep my standard deductions and still use this itemized item. Kinda wish they had issued a credit for this. Also, kinda wish motorbikes would qualify for an energy tax credit a la the one they have for hybrid vehicles.

[Eddie]

For a Mass resident this would mean an additional $625 tax deduction if you paid $10,000 for your motorcycle (assuming you bought after the new state sales tax rate was implemented in Mass).

Just put that information in my tax software and it looks like even thought you are electing to take your standard deductions you can take advantage of this.

Nonetheless, so take the $625 tax deduction times your effective tax rate and that's a good approximation of how much less taxes you will be paying to the IRS.

[richw]

Sizzle

You would have to be stupid to let this about 1 or 2% net difference influence your purchase.

Usually this kind of incentive just has dealers haggle less so really net ZERO

Of course other than Harleys most of that money is going overseas

[Sheppo]

did you notice that was posted last valentines day?

[newgixxerchic]

yeah but tax returns for 2009 aren't due til April 2010 right (assuming no extension)...???

[Sheppo]

yeah but tax returns for 2009 aren't due til April 2010 right (assuming no extension)...???

My point being I don't remember hearing if it became law. As a dealer I have nothing on it.

[newgixxerchic]

gotcha

[ChrisNoF4i]

My point being I don't remember hearing if it became law. As a dealer I have nothing on it.

Hey Duck, The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of qualified new vehicles (automobiles, light trucks, motorcycles and even some motor homes). Eddie is correct that you need not itemize your deductions in order to take advantage of this minuscule deduction. But be careful! It's only good for taxes paid on a vehicle's purchase price up to $49,500, so if you buy a Ferrari you can't deduct all the taxes or for example, on Noel's million dollah gixxah, his deduction would be pro-rated.

P.s. - Happy Valentine's Day!

[scubasteveRR]

Too bad I can't take advantage of the deduction on the used bike I bought. Think I might be able to get away with it if i say it's New to Me??

Thanks ChrisNo4Fi for replying with that info.

Hey Sheppo maybe the crooks in DC are keeping this on the DL so they don't loose any more of our tax money?

[Sheppo]

Hey Duck, The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of qualified new vehicles (automobiles, light trucks, motorcycles and even some motor homes). Eddie is correct that you need not itemize your deductions in order to take advantage of this minuscule deduction. But be careful! It's only good for taxes paid on a vehicle's purchase price up to $49,500, so if you buy a Ferrari you can't deduct all the taxes or for example, on Noel's million dollah gixxah, his deduction would be pro-rated.

P.s. - Happy Valentine's Day!

Thanks Chris.

[Danz19899]

ohhhh good to know, bot a bike last may

I knew i could get the sales tax but the excise tax too, that fricken sweet.

putting it all towards my new bike lol

[Vulcan1500]

Good thing i bought my car in 07 and my bike in 08. Not.