By Paul Chesser, nlpc.org
The "fiscal cliff" agreement was not only low-lighted by a wholesale surrender on taxes and spending by the Republicans, but also featured special favors and breaks for recreational industries like film production ($430 million) and motorsports ($70 million), as well as the sector that has been oft-criticized since President Obama entered the White House: renewable energy.
Specifically, while nothing new came through for often-bashed electric automobiles, tax credits (all continuations of credits that were set to expire) were extended to plug-in motorcycles. Buyers are allowed to deduct from their tax bills 10 percent of the cost of the two- (or three-)wheelers, or $2,500, whichever is less. This parallels the $7,500 federal tax credit for four-wheeled electric cars such as the Chevy Volt and Nissan Leaf. The breaks are projected to cost taxpayers $4 million over the next two years.