Federal EV Tax Credit: Rules & Eligible BMW Models

2022 BMW i4 on highway

 

Do gas prices have you thinking of ways to have a more affordable Athens commute? You’re not alone. That’s why a lot of drivers have been switching to electrified cars like the BMW i7. But the federal EV tax credit makes that switch even more appealing. How does the federal tax credit for electric cars work? Keep reading to find the ins and outs of the federal EV tax incentives.

Which Cars are Eligible for the Electric Car Tax Credit?

Most new EVs and plug-in hybrid vehicles are eligible for federal EV tax incentives. There is a specific set of criteria involving the vehicle’s weight, battery capacity, and other factors that determine whether a vehicle is eligible. How can you find out if the model you’re interested in buying is eligible for the electric car tax credit? You can check the IRS website. This credit is not available for Watkinsville drivers who lease instead of buy. Here are the eligibility criteria:

  • Draws propulsion using a traction battery that has at least 5 kilowatt-hours (kWh) of capacity
  • Uses an external source of energy to recharge the battery
  • Has a gross vehicle weight rating (GVWR) of up to 14,000 pounds
  • Meets specified emission standards 
  • Has to be primarily driven in the United States.

How Does the Federal Tax Credit for Electric Cars Work?

Most Jefferson drivers have heard of the federal electric car tax credit, but few know how to claim it. So, how does the federal tax credit for electric cars work, exactly? Basically, the purchase of an eligible EV or plug-in hybrid enables the customer to claim a tax credit of $2,500 to $7,500. The exact amount of the EV tax incentives is determined by the car’s battery capacity and GVWR. You can use the tool on the EPA website we linked above to find out how much your car is eligible for. Once you find out how much your car is eligible for, fill out the appropriate tax form and deduct that amount from the taxes you owe. Your tax credit can not exceed the amount of taxes you owe. So, if you owe $5,000 in taxes, and your maximum EV tax credit is $7,500, you can only claim $5,000.

How the Federal Tax Credit for Electric Cars Works

  • Calculate how much you owe in taxes.
  • Check how much in tax credits your vehicle is eligible for.
  • Deduct that amount from the taxes you owe (tax form 8936).

New BMW Models That are Eligible for the EV Tax Credit

Which BMW models are eligible for the EV tax incentives? Check out the list below:

2022, 2023 BMW i4 eDrive40 Gran Coupe – $7,500

2022, 2023 BMW i4 M50 Gran Coupe- $7,500

2023 BMW i7 xDrive60 – $7,500

2023 BMW iX M60 – $7,500

2022, 2023 BMW iX xDrive50 – $7,500

2022, 2023 BMW X5 xDrive45e – $7,500

2022, 2023 BMW 330e – $5,836

2022, 2023 BMW 330e xDrive – $5,836

2022, 2023 BMW 530e – $5,836

2022, 2023 BMW 530e xDrive- $5,836

2022 BMW 745e xDrive – $5,836

Come See the Electric Vehicles at Athens BMW

As you can see from the list above, we have a wide selection of EVs and plug-in hybrids available. Come down and take one or more for a test drive. If you’d like to learn more, read about our BMW PHEV finance offers, as well as how to prepare your home for an EV. We’re just down the road from Greensboro. So, drop by or contact us today.

 

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