Awesome, thanks for the info!

 

Hey everyone,

I just checked the IRS website official list for the $7500 EV tax credit eligibility and it looks like the i4 (both edrive40 and m50) are both included. Not sure if this is old news but I know that there was some uncertainty about it in the past and with the new proposed legislation earlier last year.

I'm hoping that I can take advantage of this tax credit and believe this will be a game-changer to many for us here in the US. One question that I still need confirmed is whether or not the credit will be available if you lease. I have heard differing opinions on this...

View attachment 5695

Great news. Thank you.

 

Fingers crossed that Biden's BBB plan does not pass as proposed. Then both models i40 and m50 would not qualify since the cap would be $55,000

 

If it qualifies, BMW select financing for me. That way the balloon payment would be almost halved with the tax credit.

 

I’m not sure it works like that?

 

Given my tax situation, I did a mock-up on this years tax filing and it only came to $2,900. Give it a try by locating a random new EV on autotrader and plug in the numbers.

I'm happy, yet sad

 

I get the full 7500. I get taxed way too much lol

 

Awesome! Thanks for sharing.

 

Hey everyone,

I just checked the IRS website official list for the $7500 EV tax credit eligibility and it looks like the i4 (both edrive40 and m50) are both included. <snip>

Nice to see. FWIW, without the the passage of the BBB ACT (no political intent, it's a tax statement) IRS form 8936 is used to claim the Vehicle Credit. You burrowed down through the instructions and found the appropriate vehicle certifications. Thanks. If you add that charge box at home, it's IRS Form 8911 (for a 30% credit). I put copies of these forms into my 2022 tax file.

 

This is great news! I've been wondering if the BBB plan can still blow this up, however? Can I assume that after April 18 (tax due date), there is a point of no return on the tax rules for 2022? Just looking for total insurance that the $7,500 locked in for 2022 taxes.

 

Unfortunately, there have been changes to tax laws that occur at the end of a tax year that can apply for that year - retroactively. A law passed in November can impact your taxes when you file the following February-April. I've been doing volunteer tax preparation for about 12 years (IRS Certified Advanced) and have seen lots of scrambles by the Tax Software companies (and anyone who prepares taxes) at the end of the year due to changes. I'm certainly no expert, but to answer your question if legislation during 2022 can impact your 2022 return filed in 2023, the answer is yes. The only assurance I can give you is that you will (probably) have to file a Return.

 

BMW needs to pass on the tax credit to lessees..........not sure that will happen, but one can hope

 

Absolutely! They did it on prior BEV/PHEV cars and I hope they do it again now that it's officially listed on the .gov website. They get the entire credit, and unfortunately the consumer would have to gamble and see if they even qualify for it.

 

I just wish that the IRS would post the 2021 Q4 EV sales numbers. Qualifying manufacturers were required to get them to the IRS by January 31st, or they get disqualified from the program.

...and it would really suck if what ended the tax incentive for BMW was someone forgetting to send in the numbers.

 

For anyone in Texas, the i4 is now also elegible for a $2500 EV grant. I applied for this in 2018. TCEQ will mail you a check after completing some paperwork and sending registration information.

https://www.tceq.texas.gov/downloads/air-quality/terp/ldplip/ldplip-22-eligible-vehicles.pdf

 

Looks to be closed (again). It comes and goes.

 

Taxes aren't fair or nice. The rules can change if the government changes them. I would have liked to see the BBB plan pass, but it's not going to happen anytime soon if at all. That means we get our 7500.

I'm sure the average income of an i4 buyer is pretty wealthy, but there are some people who would save up for the i4 and not get the full 7500. There are some who would overextend to get an i4. And there are some who can easily afford it. There are all types. I'm sure I'm not the wealthiest here, nor the poorest, but it doesn't matter.

 

Hey everyone,

I just checked the IRS website official list for the $7500 EV tax credit eligibility and it looks like the i4 (both edrive40 and m50) are both included. Not sure if this is old news but I know that there was some uncertainty about it in the past and with the new proposed legislation earlier last year.

I'm hoping that I can take advantage of this tax credit and believe this will be a game-changer to many for us here in the US. One question that I still need confirmed is whether or not the credit will be available if you lease. I have heard differing opinions on this...

View attachment 5695

Awesome, thank you for posting @xpeetzax. Some of us have been watching with disgust the inclusion of the $55K MSRP cap on electrical sedan, a clear political maneuver focused on hurting Tesla and advantaging Ford and GM, and thanks God Build Back Better is pretty much dead (may revive in bits and pieces though, hopefully not with those illogical caps favoring SUVs vs. sedan and-they-say-it's-for the climate????). However, it's not all done yet, most of us will get possession much later this year, so fingers crossed.

 

The aspect of the BBB tax credit that would affect our purchases here is looney tunes, like so many other governmental spending black holes. What sense does it make to have a far higher allowable purchase price for a luxury SUV, which is in general much heavier & larger, than a lighter, more efficient sedan? The very vehicles they’d like to see less of, bigger, much greater electron guzzling vehicles, are allowed a much higher purchase price. The lack of logic of these bills can be absolutely maddening.

That’s not to say there aren’t some aspects of the bill that would be nice, but guaranteed the overwhelming bulk of this is pork, like most of these monstrosities. But I guess ‘we need to pass the bill to find out what’s in the bill’. It’s like the many prior ‘infrastructure bills’ that were passed by both parties and did absolutely nothing for our crumbling roads & bridges…certainly here in NY. Driving on the LIE in NY is like driving a slalom, where you weave left and right to avoid one crater after another..,and that was prior to the winter!

My fingers are crossed BBB never gets passed, inflation is already out of control and hurting those that can least afford it.

 

Hey everyone,

I just checked the IRS website official list for the $7500 EV tax credit eligibility and it looks like the i4 (both edrive40 and m50) are both included. Not sure if this is old news but I know that there was some uncertainty about it in the past and with the new proposed legislation earlier last year.

I'm hoping that I can take advantage of this tax credit and believe this will be a game-changer to many for us here in the US. One question that I still need confirmed is whether or not the credit will be available if you lease. I have heard differing opinions on this...

View attachment 5695

Thanx for the update. Subject to change if new law passed. Look at state incentives as well. In past this was limited to a credit - you need to do tax planning and underpay taxes. Not eligible for refund. Please verify. Leasing you def get the credit since it goes thru the lessor.

 

I don't think you need to underpay your taxes. As long as you have over $7,500 in tax liability for the year, you can claim the full credit even if it involves getting a refund.

 

Any updates on tax credits? Did BBB pass?

 

Not so far and hopefully not ever. It would just be more pissed away money, more inflation to hurt those that can least afford it and more pet projects that benefit almost nobody. If it was passed today, in a few years people would be asking, "Where did all that money go to?"

 

Did not. Will not.

Sad. We need it. Even though I pay less taxes without.

 

IRS also still has not updated sales figures for Q4 of 2021. Should be soon now, though. It usually gets posted near the end of the following quarter, even though the actual numbers are due to the IRS by the end of the first month after, or the manufacturer is disqualified, no matter how many or how few qualifying cars have been sold to that point.

 

The IRS has FINALLY updated the numbers. BMW is now at 135,679 which was a Q4 increase of 5,189
That was a much bigger jump than I was expecting, considering it's based on deliveries in the quarter, the i4 and iX weren't available yet, and the i3, i8 and i3x were all almost off the market by then.

 

The IRS has FINALLY updated the numbers. BMW is now at 135,679 which was a Q4 increase of 5,189
That was a much bigger jump than I was expecting, considering it's based on deliveries in the quarter, the i4 and iX weren't available yet, and the i3, i8 and i3x were all almost off the market by then.

I don’t even know if this matters because the build back better bill is being discussed again.

 

Yeah, it really makes sense to cap EV sedans at $55,000 when you’re trying to get people to buy these things. Makes as much sense as allowing a cap of $25,000 more for SUVs & vans. Elect geniuses and you get genius legislation.

Now let’s see what these clowns do with the effective dates. They could start it next year, make it effective as of the date it’s signed into law or make it retroactive to 1/1 or any date in 2022 they please.

The earlier you get your car the more likely, but certainly not guaranteed, to get the $7,500 tax credit if you qualify.

 

Are there any (reliable) published projections regarding when BMW will hit the 200K production threshold and no longer be eligible for the tax credit? I was surprised to see that the company had already produced ~135K electric vehicles, presumably i3’s, i8’s and hybrids.

 

I think it's safe to say that the 5k deliveries in Q4 2021 is on the low end of things moving forward. The highest number they hit in a quarter before that was 7142 in Q2 of 2021. Even if they doubled that to 15k, It would take 5 quarters to reach 200k. Under current law, eligibility for the credit continues for two more quarters at the full level, then phases out over the two quarters after that.

In other words, if there are no changes to the law, and BMW doubles its qualifying EV deliveries, we have until (at least) June 2023 to take delivery and qualify for the full credit.

 

Yup, the 135K number includes all of BMW's electrified vehicles..........330e, 530e, i3, i8, X3 and X5 plug-in hydrids, 7-series hybrid and any others

 

Also: I am also starting to think that BEV Mini deliveries are included in the BMW total numbers?

 

Thanks for your response. Your projection is very much in line with what I was thinking.