Does The BMW IX Qualify For Electric Vehicle Tax Credits?

Are you considering an electric vehicle for your next car purchase? As sustainability becomes increasingly important, more drivers want to reduce their carbon footprint with an EV. The BMW iX brings together luxury, innovation and eco-consciousness into one incredible SUV. If the upfront cost is holding you back, federal electric vehicle tax credits could help make the BMW iX more affordable.

So does the BMW iX qualify for EV tax credits? Keep reading to learn about qualification rules, credit amounts, purchasing versus leasing, and how to claim the incentives. With potential savings of up to $7,500, federal tax credits may be the final nudge you need to go electric with the cutting-edge BMW iX.

Overview of Federal Electric Vehicle Tax Credits

The federal government currently offers a tax credit worth up to $7,500 towards the purchase of a new electric vehicle. Form 8936 is used to claim the credit, which directly reduces your income tax liability. Essentially, it’s an incentive to make electric cars more affordable today in order to increase EV adoption rates.

However, you can’t claim the full $7,500 credit for just any electric vehicle on the market. Strict qualification rules and sales phase-out thresholds determine eligibility. When claimed properly, credits between $2,500 to $7,500 are available depending on battery capacity.

It’s also important to note that federal EV tax credits have income limits:

$300,000 for households
$225,000 for head of household filers
$150,000 for individual filers

If your adjusted gross income exceeds these thresholds, you won’t qualify for any EV tax credit.

Additionally, the credit has different rules depending on whether you purchase or lease an electric vehicle:

Purchasing an EV: The tax credit is yours to use when you file your taxes for that year. You must own the vehicle to claim the incentive.
Leasing an EV: The tax credit actually goes back to the manufacturer to help lower lease costs. As the lessee you cannot directly claim the federal tax credit.

Manufacturers also reach a phase-out threshold once 200,000 eligible EV sales are reached in the United States. This means popular brands like Tesla and GM are no longer qualified for federal tax credits. BMW however is still well below the 200,000 vehicle limit as of 2023.

Does the BMW iX Qualify for EV Tax Credits?

The exciting BMW iX brings together the ultimate driving machine and next-gen electric vehicle technology into one incredible SUV. As BMW’s new zero-emissions flagship, the iX absolutely qualifies for federal electric vehicle tax credits in 2023.

BMW provides an official certification that the iX meets eligibility requirements. The iX is confirmed to offer between $5,836 and $7,500 in potential federal tax credit depending on the model’s battery capacity.

Of course you still need to meet income requirements, purchase vs lease rules, and file the proper tax forms to claim the credits. But provided you check all the qualification boxes, buying a BMW iX unlocks access to EV tax savings.

Claiming the Electric Vehicle Tax Credit When Buying a BMW iX

If you plan to purchase rather than lease a BMW iX, then you can claim the federal electric vehicle tax credit directly. The process involves a few key steps when filing your taxes:

Determine your tax liability – This is the total tax you owe based on income, deductions etc. If your liability exceeds the amount of any credits, you can utilize credits like the EV tax incentive to lower your overall tax burden.
Submit Form 8936 – This electric vehicle credit and recapture form allows you to finally claim the tax credit. Have your VIN, vehicle year, manufacturer, and certification documents on hand.
Apply credit to tax liability – Ultimatley the EV tax credit results in you owing $2,500 to $7,500 less to the IRS. If your total liability is below the full credit amount, any remaining balance rolls over to the next tax year.

When combined with state electric vehicle incentives in areas like California and New Jersey, total savings could exceed $10,000 in the first year alone. And remember – the credit is based on battery capacity and vehicle weight, not the price you paid. So even when opting for a fully-loaded 2023 BMW iX, federal EV credits still apply.

Considerations When Leasing an Electric BMW iX

What if you want to lease rather than buy the 2023 BMW iX? Can you still benefit from electric vehicle tax credits?

Unfortunately lessees cannot directly claim the federal EV credit. Instead, the tax incentive goes to the vehicle’s owner which is BMW Financial Services when leasing through the dealership. The manufacturer applies the credits to help reduce the overall lease cost.

To qualify for this indirect savings as a BMW iX lessee, there are a few requirements:

The BMW iX lease must be your first lease of the vehicle. No used EV leases allow creditors to claim credits.
The lease agreement must be at least 2 years in length. Short term leases do not qualify.
Total lease costs are reduced rather than receiving a literal cash payout. You will not directly receive the federal credit funds.

While lessees cannot process Form 8936 themselves, you still benefit from thousands in savings over the lease term from BMW leveraging the electric vehicle tax program.

Using EV Tax Credits for Business BMW iX Vehicles

Many small business owners opt for a BMW SUV to convey success when meeting clients and partners. If using the vehicle at least 50% for business purposes, a whole separate federal EV tax credit enters the picture – worth up to $7,500 courtesy of Section 45W deductions.

Benefits of using electric vehicle tax credits for a business BMW iX include:

No income limits when claiming the credit for business use EVs
No phase-out threshold for BMW based on number of vehicle sales
Credit can create net operating losses to offset income and reduce tax liability
Immediate tax deductions also possible in lieu of claiming the credit

Between federal electric vehicle credits, enhanced Section 179 deductions, bonus depreciation, and more – purchasing a new BMW iX for your business unlocks stackable tax benefits. Helping to offset the original sticker price while reducing operating costs over time.

Strategies to Maximize Savings on the BMW iX

The BMW iX is eligible for up to a $7,500 federal tax credit in 2023, but why stop there? Savvy shoppers combine EV credits with other incentives for maximum savings off MSRP.

When buying or leasing the iX, you can further reduce pricing through:

BMW customer cash incentives that lower selling price
State electric vehicle rebates – up to $2,000 in certain areas
Grants and other local electric vehicle incentives
Higher resale value retention on EV models like the iX

Pre-qualifying for financing early in the purchase process allows you to strategize with your BMW dealer on stacking qualifying incentives. Ultimately reducing your monthly payments even further.

You deserve to drive your dream electric vehicle at an affordable price. The BMW iX delivers incredible luxury and performance with potential for huge EV tax savings off sticker price.

Does the 2023 BMW iX Qualify for Electric Vehicle Tax Credits?

In summary – the innovative BMW iX absolutely qualifies for federal electric vehicle tax credits between $5,836 and $7,500 based on the EV model. To earn the maximum incentive you must:

Purchase the vehicle rather than leasing
Meet electric vehicle qualification guidelines
Satisfy adjusted gross income requirements
File Form 8936 with your tax return

Combine tax credits with other federal, state, and local EV incentives – plus current BMW offers for incredible savings. Now is the time to experience the performance icon BMW iX while reducing your carbon footprint and costs at the same time!

Reach out to your local BMW dealer now to ask about iX availability, pricing details plus qualifying for EV tax credits. They can guide you through maximizing savings off MSRP through available purchase and lease incentives.