Tax breaks could spur scooter, motorcycle sales

LOS ANGELES — Sales of motorcycles and scooters shifted into high gear last year when gas prices soared. Then recession-wary consumers hit the brakes.

Now, like so many other industries, the makers of two-wheeled, fuel-efficient bikes are relying on tax breaks offered in the federal stimulus package and other incentives to get sales moving again.

“Even before we quote the price, we tell people how much they can get off the bike,” said Jeff Bosco Biafore, a salesman at the San Jose Motorsport Scooter Center in Northern California.

Under the stimulus plan, the same provision that lets taxpayers deduct sales and excise taxes on the purchase of a new car or truck also applies to a motorcycle or scooter. They also can get a 10 percent federal tax credit if they buy plug-in bikes.

With a new job that stretched her commute from 10 to 40 miles a day, freelance film and television editor Cindy Parisotto says she is considering an electric scooter to reduce her commuting costs and carbon footprint.

She’s interested in an electric scooter from Vectrix Corp. that has a top speed of 62 mph and a range of at least 35 miles per charge. She would need to charge the bike every day, but Parisotto says she figures her electricity bill will be lower than what she spends on gas.

The $10,000 bike also comes with a $450 rebate from the company, meaning she could save about $2,000.

Manufacturers and dealers say it’s too early to tell whether the incentives are making a difference in sales.

One analyst says the tax breaks, especially for nonelectric models, aren’t enough to make a difference.

“It’s a bit of a break, but it may not be enough if you lost your job or if there’s a lot of pressure on your paycheck,” says Robin Diedrich, senior consumer analyst for Edward Jones. “You don’t buy a motorcycle because of $300 in tax savings.”

The cost of a new scooter ranges from $1,000 to $10,000, while motorcycles can cost anywhere from $3,000 to more than $10,000, depending on the model.

Scooter sales reached their highest annual level ever last year at roughly 222,000, largely due to soaring gas prices, said Ty van Hooydonk, spokesman for the Motorcycle Industry Council.

Dealers say sales might have gone even higher if manufacturers could have made more to keep up with demand.

Business was insane, we couldn’t get bikes in the shop fast enough, and in the summer we had 30 to 40 people on the waiting list,” said Mike Frankovich, owner of NoHo Scooters in North Hollywood.

Since then, gas prices have dropped to about half of the peak national average of $4 a gallon.

In the first quarter of this year, motorcycle sales fell 30.5 percent while scooter sales plunged 36.7 percent, compared to the same period last year, according to the Motorcycle Industry Council.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

FILE — Jet fuselages at Boeing’s fabrication site in Everett, Wash., Sept. 28, 2022. Some recently manufactured Boeing and Airbus jets have components made from titanium that was sold using fake documentation verifying the material’s authenticity, according to a supplier for the plane makers. (Jovelle Tamayo/The New York Times)
Boeing adding new space in Everett despite worker reduction

Boeing is expanding the amount of space it occupies in… Continue reading

Paul Roberts makes a speech after winning the Chair’s Legacy Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Paul Roberts: An advocate for environmental causes

Roberts is the winner of the newly established Chair’s Legacy Award from Economic Alliance Snohomish County.

Laaysa Chintamani speaks after winning on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Laasya Chintamani: ‘I always loved science and wanted to help people’

Chintamani is the recipient of the Washington STEM Rising Star Award.

Dave Somers makes a speech after winning the Henry M. Jackson Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
County Executive Dave Somers: ‘It’s working together’

Somers is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mel Sheldon makes a speech after winning the Elson S. Floyd Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Mel Sheldon: Coming up big for the Tulalip Tribes

Mel Sheldon is the winner of the Elson S. Floyd Award from Economic Alliance Snohomish County

Craig Skotdal makes a speech after winning on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Craig Skotdal: Helping to breathe life into downtown Everett

Skotdal is the recipient of the John M. Fluke Sr. award from Economic Alliance Snohomish County

Katie Wallace, left, checks people into the first flight from Paine Field to Honolulu on Friday, Nov. 17, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Executive order makes way for Paine Field expansion planning

Expansion would be a long-range project estimated to cost around $300 million.

Dick’s Drive-In announces opening date for new Everett location

The new drive-in will be the first-ever for Everett and the second in Snohomish County.

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

The Coastal Community Bank branch in Woodinville. (Contributed photo)
Top banks serving Snohomish County with excellence

A closer look at three financial institutions known for trust, service, and stability.

Image from Erickson Furniture website
From couch to coffee table — Local favorites await

Style your space with the county’s top picks for furniture and flair.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.