With the 2020 tax filing season upon us I wrote to Zach Clayton the North American Brand Manager at Cake 0 Emission regarding the possibility of USA Cake owners having the ability to take the IRS tax credit of 10% on our 2020 returns. I had researched what the IRS is looking for in order for companies to certify for the tax credit:
“(12) A declaration, applicable to the certification, statements, and any accompanying documents, signed by a person currently authorized to bind the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) in these matters, in the following form: “Under penalties of perjury, I declare that I have examined this certification, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this certification are true, correct, and complete.”
.04 Acknowledgement of Certification. The IRS will review the original signed certification and issue an acknowledgment letter to the vehicle manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) within 30 days of its receipt. This acknowledgment letter will state whether purchasers may rely on the certification.”
The 10% EV tax credit seems to tick all of the boxes for the Kalk& as outlined in the IRS qualifications except for Cake’s own certification.
Zach responded to me:
“Mark, Unfortunately it is not as simple as making the statement and having it certified. We also have to provide additional documentation to support our statement, and we are working diligently to prepare information for certification. I will update you as we make progress, but we unfortunately aren’t able to offer this certification to customers yet.
As previously mentioned, we are not intentionally dragging our feet. We want nothing more than for our customers to benefit from this tax credit. Outside of the 30 day response window from the IRS, it is a lengthy process and we are working as quickly as possible.
That’s great to know especially since electrek posted an article today “Buying an electric motorcycle in 2021 just got cheaper with more US tax credits”
“It was initially feared that a US federal tax credit for 10% of the purchase price of an electric motorcycle would expire at the end of 2020. But in a pleasant surprise for the industry, the tax credit was extended until the end of 2021. The credit isn’t as large as the federal tax credit available for many four-wheeled electric cars, but it can still add up to big savings.
In order to qualify, the electric motorcycle has to be capable of achieving a speed of over 45 mph (72 km/h). That rules out a lot of the electric mopeds that we’ve covered, but may still allow for some low-power electric motorcycles such as the 46 mph (74 km/h) CSC City Slicker. You’ll want to speak to your local motorcycle dealer to confirm whether their models are eligible for the federal tax credits….
Zero Motorcycles, the largest electric motorcycle dealer in the US, played a large role in lobbying for the extension of the tax credit through 2021. As Zero Motorcycles CEO Sam Paschel explained:
The electric motorcycle industry is rapidly responding to our country’s need for affordable and environmentally responsible transportation, and Zero Motorcycles is excited to combine our extreme passion for motorcycles with something that benefits everyone. These tax credits represent an investment in a cleaner energy future, and also effectively create jobs in the ever-growing electric vehicle industry.”
Thank goodness for Zero watching out for USA consumers. EV motorcycles are not an inexpensive purchase and mitigating the price by allowing US consumers to deduct the credit from their tax returns is a huge benefit, at least to normal middle class Joe’s like myself. You know a tax deduction may not be as sexy to some as the slick marketing Cake offers on social media and to the press, but to an actual OWNER like myself these are the types of things that make a realistic difference in helping to determine if one stays an owner and/or repeat buyer along with sales recommendations. Something every company should consider in this emerging market.