Tax Incentives and Savings for Electric Vehicles

September 23rd, 2022 by

Considering a switch to a plug-in hybrid or an all-electric vehicle? You are likely aware of the benefits which include outstanding fuel savings, exhilarating power delivery, and quiet driving. An additional advantage of owning an electrified vehicle is the potential tax savings that can come from plug-in hybrid (PHEV) and full electric (EV) vehicles.

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Visit BMW of Schererville and review all of the benefits of hybrid or fully electric vehicles.

The new Clean Vehicle Credit legislation added a requirement for final assembly in North America that took effect on August 16, 2022. Additional provisions will go into effect on January 1, 2023. Certain BMW models used to qualify for these incentives but the new North American final assembly requirement changed their status. BMW of Schererville remains available to help you choose the right BMW plug-in hybrid vehicle or fully electric vehicle for your lifestyle.

Federal EV Tax Credits Explained*

a charging EV
  • The language in the legislation indicates that the tax credit would be implemented at the point of sale instead of on taxes at the end of the fiscal year
  • The federal EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, or $300,000 for joint filers
  • The new credit will also continue to apply to Plug-in Hybrid EVs (PHEVs) as long as they meet the same requirements outlined above and are equipped with a battery over 7 kWh

Which Vehicles Qualify for the EV Federal Tax Credit?*

The build location of a particular vehicle can be confirmed by referring to its Vehicle Identification Number (VIN) using a VIN decoder or an information label affixed to the vehicle. Remember, only vehicles assembled in North America qualify for EV tax incentives. Previously, final assembly location was not a factor in qualification.

If you live in the Lake County area and you’re considering an electric vehicle, please come see our professional sales staff at BMW of Schererville. Our expert team can provide details on which BMW vehicles currently qualify for an EV Tax Credit, review all of the benefits of hybrid or fully electric vehicles, and are also aware of the latest changes to the federal tax credit eligibility requirements. Visit us at 1400 US Hwy 41, Schererville, IN 46375, or call our dealership at (219) 864-7333.

*Additional state incentives may also be available. Tax credits are complex and are subject to change without notice. Please consult with your tax professional to validate credit availability and eligibility.

Posted in EV