In addition to additional state incentives like rebates, tax credits, and grants, owning the first-ever BMW i4 may entitle you to a federal tax credit worth up to $7,500.
In This Article...
Mark E.
I’m going to accept delivery when it arrives because I’ve traveled so far. Here are a few justifications for why I’m hesitant to cancel my order.
I want my i4 to be exactly how I configured it to be, with two motors, parking assistance, and driving aid. If I was offered one for less than MSRP, I might choose alternate colors, trim, wheels, and even without laser lights (although I’m very certain that won’t happen and they will still sell for MSRP for the time being).
When the m50 is available, I will be able to purchase it. We are good to go after I evaluated the potential that the credit might go because sh*t happens and discussed it with my financial counselor and boss (both my wife). I also had the good fortune to have a good CA who called me last week when a client cancelled their eDrive40. As a result, I obtained that, will receive the tax credit for it, and will sell it when mine arrives, hopefully close to MSRP. I have considered retaining the edrive 40, but I truly wanted this to be my splurge car for my 20th wedding anniversary and wanted to have exactly what I wanted.
I won’t be waiting around for BMW to cut the price by 7.5k, half that amount, or even just 1000. They will still sell. BMW will claim that the situation was beyond their control, which is true—if you don’t have all of the necessary parts, you can’t manufacture a car. The two culprits are COVID and Mr. Putin’s war.
Even while this might be against the rules of the World Trade Organization, I can appreciate the need for just applying to cars built in North America. The $55k cap on sedans and the $80k cap on SUVs, though, baffles me. Nothing about this makes sense. Additionally, they ought to have included a multi-year transition period to allow businesses to adjust. For instance, VW will begin producing ID4s in the US, and BMW may produce the iX and i4 in Mexico or the US, respectively.
The BMW i4 would it be eligible for a federal tax credit?
The goal of California’s electric car incentive program is to encourage people to choose clean, ecologically friendly cars. Unfortunately, it’s unclear, unreliable, and underfunded for buyers.
However, the U.S. Department of Energy recently published a webpage listing the 2022 and 2023 model vehicles that at least meet the criterion of being made in North America. The legislation does not define which vehicle brands and models meet all of the tax credit qualifying conditions. These automobiles include the Tesla Model 3 and Model Y, the Chevy Bolt, the Nissan Leaf, the Ford Mustang Mach-E, and others.
According to Consumer Reports, the Hummer EV, the BMW i4, the Hyundai Ioniq 5, the Kia EV6, and the Toyota bZ4X are among the vehicles that do not qualify for the new tax credit because they are either too expensive or are not made in the United States.
Yes, provided you can locate a rebate. Combining the federal tax credit with California’s Clean Vehicle Rebate Program can result in rebates of up to $7,000 when purchasing or leasing a new plug-in hybrid electric vehicle, battery electric vehicle, or fuel-cell electric vehicle.
When attempting to receive the rebate, Californians have frequently had to endure lengthy waits since the fund that compensates them regularly runs out of funds. About $352 million of the $515 million the state set up for the refund program last year is still accessible. The website for the program provides information on which vehicles are eligible and how much of a rebate you can receive.
Just so you know:
1:56 p.m. Aug. 17, 2022 In a previous version of this article, it was stated that there are no income restrictions for applicants to the California Clean Vehicle Rebate Program. It does. A rebate is not available to single taxpayers or joint filers with incomes of $135,000 or more annually.
The income limits for buyers under California’s rebate program are $135,000 for single filers and $200,000 for joint filers, and the state refund amount varies depending on the vehicle you select. For battery electric and hydrogen fuel cell vehicles, the refunds are often higher, whereas for plug-in hybrids, they are typically lower.
According to Bill Magavern, policy director of the Coalition for Clean Air, “the federal tax credit would help California’s electric vehicle rebate program, which already outpaces the rest of the country.”
Depending on the type of car you want to buy. There is now a $7,500 tax credit available from the federal government for new renewable energy vehicles, but each automaker is only eligible for 200,000 of these rebates. Due to exceeding that limit, Tesla, General Motors, and Toyota are no longer eligible for the credit. The cap is eliminated by the Inflation Reduction Act, which also creates a $4,000 credit that can be used for used cars.
The car need not have been built in the United States in order to qualify for the current federal tax credit.
If the vehicle you’re considering purchasing won’t be eligible for the new tax credit because it wasn’t assembled in the United States, Magavern advised, “it would behoove you to buy it now” and submit an application for the current credit.
What car buyers need to know about upcoming EV tax benefits, according to the LA Times today
Watch L.A. Times Today live on the Spectrum News App or Spectrum News Channel 1 at 7 p.m. Channel 99 on Cox Systems is available to viewers in Orange County and the Palos Verdes Peninsula.
Does the BMW i4 M50 qualify for a tax credit?
The BMW i4 is available in two models: the i4 eDrive40, with an MSRP starting at $55,900, and the i4 M50, with an MSRP starting at $67,300. Taxes, title, license, and registration fees are not included in the rates, nor is the $995 destination and handling fee. However, both variations are eligible for the federal tax credit, which greatly lowers the cost.
The i4 is a significant aspect of BMW’s attempts to usher in the future of electric transportation as the brand’s first electric sedan. The popular BMW 4 Series Gran Coupe’s body shape is carried over to the i4. The EV has a long wheelbase, short overhangs, and a flowing roofline as the final touch. The i4’s design is based on BMW’s Cluster Architecture (CLAR) platform, which combines production-useful components including steel, aluminum, and occasionally carbon fiber.
With city collision mitigation, buyers can get common safety features like active blind spot identification, lane departure warning, and frontal collision warning. The iDrive operating system, the pinnacle of BMW’s onboard technology, is also included with the i4. The intelligent personal assistant offered by BMW can be interacted with by drivers to provide a better user experience. Additionally, wireless Apple CarPlay and Android Auto integration are supported by the 2023 BMW i4.
Does the BMW i3 qualify for a tax credit?
4. Be kind to your wallet.
Your tax condition determines the actual savings you receive from the federal government. We advise speaking with a tax expert to confirm credit availability and eligibility. Despite doing its utmost to keep this information accurate, BMW of North America, LLC cannot ensure your eligibility or its current accuracy. Owners are also qualified for a wide range of additional regional and municipal incentives.
For information on the applicability and availability of incentives in your city or neighborhood, please visit energy.gov*.
The typical American travels 13,476 miles year and spends $1,262 on gas. In contrast, the BMW i3’s electricity usage costs less than half as much. That amounts to around $4,446 in petrol savings during the typical car ownership period of six years.
For a comparable gasoline-powered automobile, we’ve projected a fuel economy of 30 mpg. For instance, the average price of gasoline across all grades is $2.81 per gallon, and the 2018 BMW 3 Series: 4,49 gallons per year x 13,476 miles x 30 miles per gallon. 449 gallons multiplied by $2.81/gallon equals $1,262 in annual gasoline costs or $7,572 over the course of six years.
For the BMW i3, we’ve assumed a combined power use of 30 kwH per 100 miles and an electricity cost of $0.1289 per kwH on average in the United States in 2018: 4,043 kwH/year is equal to 13,476 miles / 100 * 30 kwH. 4,043 kwH times $0.1289/kwH equals $521 in annual electricity costs or $3,126 over the course of six years.
Does BMW qualify for the EV tax credit?
You automatically qualify for the $7,500 EV Federal Tax Credit when you buy a 2021 BMW 330e car, leaving you with a $1,000 tax bill balance.
Does the BMW i4 have a charger?
The Flexible Fast Charger comes standard on every BMW electric vehicle. This portable device enables optimum charging everywhere you go and is compatible with any 120V or 240V outlet. At a 240V plug, you can charge from 0% to 100% in approximately 12 hours.
The pinnacle of electric convenience is the optional BMW Wallbox. It delivers Level 2 charging at 9.6 kW charging speeds (around 30 miles per hour of charging, achieving its full charge in around 12 hours), and because to its durable and weatherproof design, it can be installed in your garage or outdoors.
It is not necessary to bring any additional equipment when charging at public charging stations. CCS (for DC Fast Charging) and J1772 are the names of the standardized charging technology used in North America.
You have access to any CCS or J1772-equipped public charging station. Your BMW’s navigation system and the MyBMW App will both display CCS/J1772 plug-equipped public charging stations for you to use.
Who can receive an EV tax credit?
- A tax credit of up to $7,500 will be given to new electric and fuel-cell automobiles. Some plug-in hybrid cars will still be eligible.
- Only automobiles with a price below a particular threshold will be accepted. The ceiling for SUVs, pickup trucks, and vans is $80,000 per vehicle. The credit cap for sedans, hatchbacks, wagons, and other cars is $55,000. (Learn more about reasonably priced EVs.)
- There won’t be a cap on the volume of credit-eligible automobiles that an automaker can sell.
- Unlike in previous years, a complex set of computations based on where the vehicles are produced and where the components that make up their batteries are purchased will determine the precise amount of the new tax credit. Through 2026, these criteria will be tightened yearly. By the end of December, the measure requires proposed regulations outlining these criteria, which will likely be adopted sometime in 2023.
- The only automobiles that qualify for a tax credit are those built in North America.
- Vehicles having parts from “foreign entities of concern,” such as China and Russia, will be excluded as of December 31, 2023.
- Dealerships will be permitted to provide customers with the value of a tax credit up front beginning in 2024. For car buyers, this might make the process easier.
- Buyers of cars must fit specific financial requirements. Although heads of household must earn less than $225,000 and individual filers can only qualify with income under $150,000, households with an adjusted gross income up to $300,000 will still be eligible for the benefit.
- For the first time, purchasers of used EVs will be eligible for a tax credit of $4,000 or 30% of the vehicle’s sale price, whichever is lower, but only if they purchase the vehicle from a dealership.
- For buyers of used EVs, the income requirement is lower: $150,000 for joint filers, $112,500 for the head of family, or $75,000 for an individual.
- Bidirectional EV chargers, or those that can charge your car and power your home simultaneously, are now qualified for tax breaks.
Although I adore quirky, vintage European sedans like the Renault Medallion, it is my passion to assist people in finding a car that is safe, dependable, and still makes them smile—even when they’re caught in traffic. You can usually find me planning my next vacation or exploring a new city on foot when I’m not behind the vehicle or at the computer.
Exist tax credits for purchasing a hybrid vehicle?
A federal income tax credit of up to $7,500 may be available for new all-electric and plug-in hybrid vehicles purchased in 2010 or later. The credit’s value will change depending on the vehicle’s battery’s capacity. There may also be incentives from the state or locality.
Small neighborhood electric cars may be eligible for another credit, but they are not eligible for this one.