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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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. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.