BMW Electric & Plug-in Hybrid Vehicle Tax Credit Update for 2023
If you’ve begun to consider switching to a plug-in hybrid or an all-electric vehicle, you’re probably familiar with their compelling list of benefits including outstanding savings on fuel, exhilarating power delivery, and serene driving characteristics. There’s also another tremendous advantage that comes from owning an electrified vehicle that you may have not previously considered, and that is the potential tax savings that can come from plug-in hybrid (PHEV) and full electric (BEV) vehicles.
The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), and is now known as the Clean Vehicle Credit. This new legislation adds a new requirement for final assembly in North America that took effect on August 16, 2022. Additional provisions will go into effect on January 1, 2023. Certain BMW models used to qualify for these EV incentives but the new North American final assembly requirement changed their status. Sewickley BMW is standing by to help you choose the right BMW Plug In Hybrid Vehicle or Fully Electric Vehicles for your lifestyle.
Federal EV Tax Credits Explained*
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*.
Which BMW Models Qualify for the EV Federal Tax Credit*?
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:
- 2022-2023 BMW 330e
- 2022 BMW X5
*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.
Additional BMW Electric Vehicle Ownership Benefits
Convenient Charging Solutions – Whether you’re headed across town or across the country, range anxiety concerns are a thing of the past thanks to advanced BMW EV charging solutions. Home charging station installation lets you wake up to a fully-charged vehicle each morning. You’ll also have access to an ever-growing network of public charging stations that help you stay charged while on the go. Plug-in hybrid models also benefit from a conventional gasoline engine for backup, helping you get where you need to be without the need to worry about charging.
BMW EV/PHEV Battery Warranty – Backed by the confidence of an 8 Year / 80,000 Mile limited warranty, you’ll enjoy peace of mind from knowing that your vehicle is protected for the long haul.
HOV Lane Access – Depending on the state, your BMW EV or PHEV can potentially qualify for access to HOV lanes. Skip the traffic and experience the freedom of emission-free commuting 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.