Zero XU Tax Credit and Battery Update

The street-legal Zero XU debut was an unexpected surprise from the Santa Cruz-based electric motorcycle firm (Zero Motorcycles XU First Look). The new “urban-crosser’s” distinguishing feature, a removable battery pack, is a first for production electric motorcycles. However, some of the key details of that removable battery are still missing, namely the price and weight. Also unclear was the requirement that a second battery back be purchased for the XU to qualify for a Federal tax credit.

Plug-in Electric Vehicle Credit

The Qualified Plug-in Electric Vehicle Credit, which offers a tax credit equal to 10% of vehicle MSRP, represents one of the key sales incentives of electric motorcycles (and a prominent marketing pitch). Notable in the press announcement for the Zero XU, and the previous street-legal version of the Zero X, was the requirement of a second battery pack to qualify. The reason for this is made apparent in the IRS form for the tax credit, which defines a Qualified Plug-In Electric Vehicle as:

“a vehicle made by a manufacturer that is propelled to a significant extent by an electric motor that draws electricity from a battery that can be recharged from an external source of electricity and has a capacity of not less than:
• 2.5 kilowatt hours if the vehicle has 2 or 3 wheels, or
• 4 kilowatt hours if the vehicle has 4 wheels.”

The Zero XU battery storage is limited to only 2 kWh, thus making it ineligible. While a strict interpretation of the legal definition makes eligibility even with an extra battery purchase seem vague, Zero reps confirm the XU does indeed qualify with the purchase a second battery pack. The onus of vehicle certification for the tax credit is on the manufacturer, not the purchaser, so XU owners can take the write off with confidence until otherwise stated.

Battery Price and Weight 

Zero is still hashing out the particulars, however, on how much that extra battery will cost. The company website offers a lithium-ion battery pack and charger for the MX and X models (upon which the XU is based) for $2995.99 and Zero reps cited the battery sans charger rings in at around $2300. Reckoning the cost of the $7995 XU with a $3000 battery would raise the total to $11K, which nets a $1100 tax credit. Zero would likely reduce the cost of an extra battery for the XU model to make it a more enticing pricing package. Details are forthcoming. (UPDATE: Zero confirms a second battery and quick charge will cost $2995 and will be bundled with the second charger. A replacement battery pack will cost $2495, but this is not an option for customers who simply want a second pack. The $2495 battery option is only for replacing a battery pack which has lost its performance due to long-term usage or due to a non-factory fault. Zero notes that warranties for the battery packs are void if the recommended care/charging is not followed.)

Also still to be determined is the XU battery pack weight. Batteries on the X and MX weigh in the neighborhood of 50 pounds, according to the folks at Zero, who are still hunting down the exact figures. On a practical level, the weight of a removable battery is critical, as the convenience factor wanes considerably with the prospects of packing a heavy metal box up to an apartment or office building for a recharge.

Yet the potential of the Zero XU as a fleet vehicle seems quite promising in the right application. Imagine a courier based in a high-density urban center operating out of a shop with two or three battery packs in staggered charging sequences. Utilizing the Zero’s new quick-charging option, which delivers a 90% recharge in one hour and full 100% recharge in 1.2 hours, the XU could potentially operate without recharge delays.

Zero reps promise hard answers on price and weight are on the way. Stay tuned to Motorcycle USA for the update, as well as our first ride evaluations of the latest crop from Zero later this month.