Stimulus Good for Motorcycles
By: Robert Partain
Staff Writer for All About Bikes
If you have been wondering if there was any good news in the recently signed-into-law stimulus bill for motorcycle riders, you are in luck. In fact, the good news applies to anyone who might be planning to buy a new car, light-duty truck or motorcycle. You can thank the US Senate for this.
While in the Senate, the bill was amended to provide purchasers of new motorcycles, cars, and light-duty trucks a tax credit that allows a deduction of state sales or excise taxes for these vehicles as long as they are (or were) purchased between Nov. 12, 2008, and Dec. 31, 2009.
This is great news not only to riders but also to manufactures and dealerships, which have been hit hard by the recent downturn in the economy. The expanded tax credit to motorcycles should make it easier to purchase motorcycles, both gasoline and electric-hybrids normally found in scooters. Reduced sales have forced layoffs at many companies and dealerships, including Harley-Davidson, one of Milwaukee's largest employers.
Senator Herb Kohl (D-Wis) recently said, "Like other struggling businesses, sluggish sales have led to job losses in the motorcycle industry and the dealerships that depend on it."
The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). It will be an above-the-line deduction, meaning even taxpayers who do not itemize their taxes may take it in addition to the standard deduction.