Do Motor Scooters Qualify for the New Sales and Excise tax Deduction?

The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of qualified vehicles from February 17th, 2009 through the end of the year. The deduction does not require a taxpayer to itemize and is means tested (phases out for single filers with MAGI over $125k and MFJ filers with MAGI over 250k).

An NAEA member questioned whether motor scooters would qualify for the deduction. The IRS ARRA team replied “A motorcycle is defined as a motor vehicle with a seat or saddle for the use of the rider and designed to travel on not more than three wheels in contact with the ground. A motor scooter, either gasoline or electric powered, that meets the definition of a motorcycle would qualify for the Sales Tax Deduction.”

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