You make the callBy: National Association of Tax Professionals
March 23, 2023

Question: I’m finding conflicting information regarding federal tax credits for two- and three-wheeled vehicles on the internet. Can I claim the federal tax credit for a two-wheeled vehicle acquired in 2022 or not?

Answer: No. The federal tax credit provided for in §30D(g) for two- or three-wheeled plug in electric drive vehicles expired at the end of 2021 and was not extended. However, if you acquired the two-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022.

The credit is 10% of the cost of any qualified two-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year; it cannot exceed $2,500. As an aside, e-bikes, for example, generally achieve a speed of no more than 28 MPH and, therefore, would not have met the definitions for the credits outlined.

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penAbout National Association of Tax Professionals

The National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.

The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.

Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.

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