Buying a new car is always exciting, but getting a tax credit for it? Now, that’s something! If you’ve been eyeing the 2024 BMW X5, you might wonder if it qualifies for tax credits. Spoiler alert: it does! But let’s get into the details of how getting the tax credit works.
2024 BMW X5 Tax Credit
The 2024 BMW X5, a plug-in hybrid electric vehicle (PHEV), combines luxury, performance, and eco-friendliness.
The U.S. government hands out tax credits for electric and plug-in hybrid vehicles under the Inflation Reduction Act of 2022, which introduces stringent requirements for vehicles to qualify. For the 2024 BMW X5, here’s what you need to know:
- Final Assembly in North America: The vehicle assembly must be in North America to be eligible for the federal tax credit.
- Critical Mineral and Battery Component Requirements: Since 2023, the tax credit comes in two parts:
- $3,750 for passing the critical minerals requirement.
- $3,750 for passing the battery components requirement.
The 2024 BMW X5 meets enough critical-mineral requirements to qualify for a $3,750 credit. This partial credit is still a significant saving but doesn’t meet the full $7,500 credit criteria due to not fully meeting the battery component requirements.
To maximize your benefits, ensure that your purchase meets the following conditions:
- Personal Use: The vehicle must be bought for personal use and primarily used within the U.S.
- Income Limits: Your modified adjusted gross income (AGI) should be under $300,000 if you are married and filing jointly with your partner, $225,000 if you are the head of your household, and $150,000 for all other filers.
Other BMW Models for Tax Credits
If the BMW X5 doesn’t check the right boxes for you, other BMW models may also qualify for tax credits. Here’s a quick rundown:
- BMW 330e: This plug-in hybrid electric sedan is known for its excellent balance of performance and efficiency. The 2023 model qualifies for the EV tax credit (provided it meets the assembly and component sourcing requirements).
- BMW iX: This all-electric SUV is designed to provide a fully electric driving experience. While specific credits can vary, the iX often qualifies for significant federal tax incentives due to its fully electric nature and compliance with assembly and component requirements.
- BMW XM: Another BMW plug-in hybrid offering, the XM combines performance and eco-friendliness. Eligibility for tax credits depends on the same critical mineral and battery component requirements as other PHEVs.
When considering a vehicle purchase for tax credits, ensure to work with the most updated and accurate information from credible sources to avoid any mix ups associated with meeting the eligibility criteria.
Key Takeaways
- The 2024 BMW X5 qualifies for a partial federal tax credit of $3,750. It meets critical mineral requirements but not battery components.
- Other BMW models like the BMW 330e, BMW iX, and BMW XM might also qualify for various tax credits.
- To take advantage of these credits, Ensure you meet the income limits and use the vehicle primarily in the U.S. for personal use.
Remember that buying a car is a significant investment—make sure it’s the right choice for you beyond the tax credits. For expert advice that accounts for your specific tax situation, consider booking a consultation with Tax Goddess. We are here to help you navigate the complexities of tax credits and make the most of your investments.
Ready to Spend on Your Desires While Claiming Tax Savings?
If you’re ready to explore your options and see how you can benefit from tax credits with your next luxury purchase, book a free 30-minute consultation with us today. Let’s help you live more and save more!
