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There are a lot of factors that attract drivers to BMW electric vehicles. Electronic vehicles (EVs) have a much lower environmental impact and either save you money at the pump or eliminate gas costs entirely. But one advantage that many drivers still have questions about is whether they are eligible for a federal EV tax credit and how the process works. Here’s a rundown about EVs and their tax credits.
Tax Credits for your BMW EV
That’s right, in addition to the fuel savings and helping the environment, buying a BMW EV means tax advantages. Here are the basics of what you need to know.
- Tax credits are available for fully electric and plug-in hybrid models. While the amount you are eligible for changes depending on the vehicle and the battery, both full EVs and plug-in hybrid vehicles (PHEVs) can save you money on your taxes. Check with the IRS EV tax credit website to determine if your EV qualifies.
- You need to buy new to qualify. There are still plenty of reasons to choose a pre-owned electric or hybrid BMW model, but unfortunately, you won’t get the Federal tax credit if you do. Your vehicle must be purchased new between 2010 and the present to qualify.
- The tax credit will directly lower your taxes. The amount of tax credit your vehicle qualifies for will vary, but whatever it is, it will directly lower the amount you owe on your taxes. For instance, if you qualify for a $2,500 EV tax credit and would owe $3,000 in taxes, the EV tax credit will lower your taxes due to just $500. The maximum credit is worth $7,500 off your taxes in the same year your EV is purchased.
- Check out local incentives as well. While you won’t get a tax credit in Florida for owning an EV, you can get a High Occupancy Vehicle (HOV) decal that allows you to use HOV lanes along with other benefits, and local governments — especially in Orlando — often offer incentives as well.
BMW EVs in Florida
Want to learn more about the EV tax credit and other reasons to buy a BMW electric or hybrid model? Visit Fields BMW of Lakeland today to talk to one of our associates or take a test drive in one of our electronic or hybrid vehicles.