Minnesota congressman Dean Phillips introduced a bill in the U.S. House of Representatives on December 8, 2022, that would bring a new electric off-road vehicle tax credit. This bill sounds great, but it leaves out motorcycles. H. R. 9481 is for vehicles that have three or more wheels.
H. R. 9481 – the Michael F. Donoughe Tax Credit for Off-Road Electric Vehicles Act
Polaris is the main company backing this bill, and it will help put an EV tax credit in place for electric powersports. It provides a tax credit of up to $2,500 (or 10% of the purchasing price) for all new, qualifying vehicles.
So what is a qualifying vehicle? According to the bill, vehicles must be vehicles designed primarily for non-road use and travel over rough terrain (off-highway use) and have three or more wheels and one seat or more.
They must be propelled primarily by an electric motor that utilizes a battery with a capacity of 6 kilowatt hours or more. They must be able to achieve a speed of 40 mph, weigh less than 3,500 pounds, and be assembled in North America. Lastly, they must be purchased after December 31, 2022.
“The growth and interest in electrification is happening across various sectors and the off-road vehicle segment is no different,” Polaris CEO Mike Speetzen said in a statement.
“We have seen the advantages that electric technology can provide to off-road vehicles and their performance, especially for those who use their vehicle for utility purposes. We believe the ‘Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act’ will help promote the electrification of off-road vehicles and make them more affordable to the agricultural and outdoor industry professional.”
Why No Dirt Bikes and Off-Road Motorcycles?
So, this begs the question, why leave motorcycles out? Well, I have a few theories on that.
Firstly, there aren’t many designated off-road bikes that are fully electric, at least not enough to warrant the kind of lobbying that a bill like this takes. Polaris doesn’t sell something like that, and Indian Motorcycle, which is owned by Polaris doesn’t have something like that.
Secondly, the tax credit would be pretty small on a lot of off-road bikes because many of them simply don’t cost that much. So again, there aren’t enough people up in arms about it. Still, a 10% tax credit would be nice on any bike, regardless of the cost.
This is a case of motorcyclists getting the short end of the stick. Maybe there’s another bill in the works to add a tax credit to electric off-road motorcycles, but I’m not aware of it. And with so much focus on EVs lately, I’m frankly surprised there isn’t a huge push for massive tax credits for all of the electric vehicles out there.
It’s a shame to see two-wheeled EVs left out of this proposed bill, but there’s a long way to go before this gets greenlit. It will need to be reintroduced before Congress can take the next steps. The next seating for Congress isn’t until January 2022, and that means Phillips will need to reintroduce the bill when the next Congress convenes in January. Let’s hope he does and that motorcycles are included.
