New Motorcycle Purchases to Qualify for Stimulus Bill State Sales and Excise Tax Credit
February 25th, 2009 Posted in Misc. Motor
Motorcyclists, we finally have a place at the table. An effort led by Wisconsin Democratic Senators Herb Kohl and Russ Feingold should prove beneficial to all of us waiting to purchase a new motorcycle. Their collective efforts resulted in an expanded tax credit for new motorcycle sales being included in the new American Recovery and Reinvestment Act of 2009, which should offer a helping hand to everyone associated with the motorcycle business, from manufacturer, to dealer and retail customer. I’ve been on the manufacturer side and I have to say, this is a blessing. No matter how you feel about the “Stimulus Bill,” at least those of us in the field of motorcycles and motorcycle accessory products have cause to be thankful. It really doesn’t matter if your new motorcycle is made in America, Germany or China. According to language in the bill, they are considered one in the same. Please sing to the tune, “Money makes the world go around.” While I haven’t heard about layoffs at any of the foreign based motorcycle companies, many of my friends and long-time colleagues at Harley-Davidson are now looking for new jobs, which may be created or saved.
According to Speaker of the House, Nancy Pelosi, “You have to see the language.” That is, someone actually needs to take the time to read and understand this legislation. In particular, please review, Additional Deduction for State Sales Tax and Excise Tax on the Purchase of Certain Motor Vehicles, as it applies to motorcycles, pages 203-204. Here’s an example, the tax and excise credit will apply to motorcycles, which are <8500 GVWR. Okay, I can finally purchase that new motorcycle, with two engines and a double-wide sidecar. Naturally, those individuals who may make too much money also receive less tax credit. That is, your tax credit will be reduced based upon adjusted gross income. Maybe hiring that accountant isn’t such a bad idea after all. Why penalize those who can actually afford to purchase a new vehicle? Nevertheless, if you’re ready to buy, then it’s most likely time to move ahead.
As for the impact relating to the use of motorcycles in law enforcement service, Mr. Doug Wyllie, Senior Editor at PoliceOne.com recently took a look at the economic stimulus package, with a particular focus on funding, which will be made available for state and local law enforcement. With job layoff’s and hiring freezes in place with many state and local law enforcement agencies, the stimulus bill should enable many officers to retain their current positions and may also mean more officers on the street. As a first round response, the Department of Justice will be required to submit a spending plan to Congress within a sixty day period. Trust me on this; they are ready to spend our money. Please visit PoliceOne.com/patrol-issues for additional details. So far, the word “motorcycle” has yet to come up. Given that many state and municipalities are already exempt from taxes, then there may not be much impact when local government agencies purchase new motorcycles.
Let’s Ride.
