Stimulus package offers tax credit for electric cycles

RHODE ISLAND - The American Recovery and Reinvestment bill signed by President Obama includes a 10 percent tax credit toward the purchase of all-electric two-wheelers.

The Clean Energy Stimulus and Investment Assurance Act of 2009, which is part of the overall stimulus package, invests more than $2 billion in electric vehicle technology and provides consumers with tax credit provisions to purchase a wider variety of road-ready plug-in electric drive vehicles. This Clean Energy Act has the potential to stimulate the sale of up to 1.5 million plug-in vehicles, according to Plug In America.

Along with other plug-in advocates, Vectrix supported the legislation and the bill proposed by Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT). The amendment passed the Senate with broad bipartisan support, 80-16, showing a unified commitment to get plug-ins on the road. The American Motorcyclist Association also helped secure a provision that allows consumers who purchase a motorcycle to deduct the sales and excise tax on their 2009 returns.

“This bill makes it possible for more consumers to purchase the cleanest running vehicles out there today,” said Mike Boyle, Vectrix CEO. “It will have a huge impact not only on reducing emissions, but creating jobs and reducing our dependence on foreign oil.”

A supplier to the largest dealer network for electric road vehicles in the U.S. consumer market, Vectrix Corp. announced its own consumer incentive of $750 on 2007 models and $450 on 2008 models to encourage even more consumers to go electric.

“The innovative work being done at Vectrix in Middletown is good for our environment and our state’s economy,” said Senator Sheldon Whitehouse (D-RI). “The tax incentives in the economic recovery legislation will help consumers in Rhode Island and around the country purchase cleaner, more fuel-efficient vehicles, and save money in the long run.”

Rhode Island-based Vectrix supplies 160 retailers. Vectrix has an agreement with GE Capital Solutions' Commercial Distribution Finance to provide inventory floor planning for North American Vectrix dealers, and recently signed with Sparta Commercial Service to provide consumer financing.