If you've been eyeing a shift toward a plug-in hybrid or an all-electric car, you're likely aware of their enticing perks like substantial fuel savings, thrilling power delivery, and serene driving experiences. But there's another significant advantage to owning an electrified vehicle that might not have crossed your mind—the potential tax benefits associated with plug-in hybrids (PHEV) and full electrics (BEV).
The Inflation Reduction Act of 2022 (Public Law 117-169) brought changes to the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now termed as the Clean Vehicle Credit. With this new legislation, a key requirement for final assembly in North America was implemented on August 16, 2022, while additional provisions came into effect on January 1, 2023. Previously, certain BMW models qualified for these EV incentives, but the new North American assembly requirement altered their eligibility status. Preston BMW is ready to assist you in selecting the ideal BMW Plug-In Hybrid Vehicle or Fully Electric Vehicle tailored to your lifestyle needs.
Although often experienced as a discount on the vehicle’s selling price, the EV Tax Credit is just that — a tax credit. This government policy allows certain buyers to claim an eligible tax credit against the federal income taxes they owe in the year in which they buy the car. Put simply, it reduces your tax liability. Should you qualify for a tax refund, you’ll receive whatever the amount of your credit on top of your refund*.
The build location of a particular vehicle can be confirmed by referring to its Vehicle Identification Number (VIN) using a VIN decoder or an information label affixed to the vehicle. Remember, only vehicles assembled in North America qualify for EV Tax Incentives. Previously, final assembly location was not a factor in qualification. Currently, that means only the following vehicles qualify for an EV Tax Credit:
*Additional state incentives may also be available. Tax credits may be complex and are subject to change without notice. We recommend consulting a tax professional to validate credit availability and eligibility.
For a limited time only, select BMW EV models are eligible for exclusive EV Lease Credits. There’s never been a better time to experience the exhilaration and efficiency that only a BMW EV can deliver. Below, you’ll find a complete breakdown of eligible models and their respective lease credits. Please see Sewickley BMW for full program details, terms, and information regarding eligibility.
*Not available on BMW FS OwnersChoice. Not valid on retired service loaners or company cars. Programs are based on a New Retail Type/Program Type 1/1. Offers expire November 30, 2023. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to individual tax situations.
Streamlined Charging Solutions – Say goodbye to range worries, whether you're navigating nearby streets or embarking on a long-distance journey, thanks to innovative BMW EV charging options. Installing a home charging station ensures a fully-powered vehicle each morning, while an expanding network of public charging stations keeps you fueled on the move. Plus, plug-in hybrid models boast a conventional gasoline engine as a backup, ensuring uninterrupted journeys without charging concerns.
BMW EV/PHEV Battery Warranty – Rest easy with an 8-year/80,000-mile limited warranty, providing long-term protection and confidence in your vehicle.
HOV Lane Access – Depending on your state, owning a BMW EV or PHEV could grant you access to HOV lanes. Glide past traffic and relish emission-free commuting freedom with an electric or plug-in hybrid vehicle.
*The information above does not constitute tax planning advice, as individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to individual tax situations.