Is the tax credit for two-wheeled plug-in electric vehicle still available?

As of the current tax guidance, the alternative motor vehicle credit for two-wheeled plug-in electric vehicles is no longer available for vehicles purchased after 2021. The credit expired for vehicles acquired after that year, and no extension has been enacted as of the time these instructions were published. However, if a vehicle was purchased in 2021 but placed in service during 2022, the credit may still be claimable for the 2022 tax year.

For vehicles with two or three wheels that are propelled by electricity and manufactured primarily for use on public streets, roads, or highways, the IRS recognizes them under the qualified alternative fuel vehicle refueling property rules. However, this applies only to refueling property (such as charging stations) that is of a character subject to depreciation (i.e., business or investment use property), not to the vehicle itself for personal use.

Therefore, while there is no longer a direct tax credit for purchasing a two-wheeled plug-in electric vehicle for personal use, certain related credits may apply if the vehicle is used in a business or investment context and involves qualified refueling property.

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Disclaimer: Always verify with the current Federal or State Department of Revenue Forms and Instructions, as tax rules may change. Consult a CPA or tax professional for personalized advice.