As of January 1st, 2024, US federal tax credits for BMW EVs and PHEVs have entirely vanished. Not a single vehicle qualifies. While initially a great way to make BMW EVs (and PHEVs) affordable, the incentives were always designed to be temporary, with the Inflation Reduction Act of 2022 taking dramatic steps toward phasing them out. Even last year, BMW vehicles – and many clients – had trouble qualifying for many of the rebates. With household income limits and other newly implemented restrictions, it was only a matter of time before the rebates disappeared. Thankfully, there are still some ways to save.
Can You Still Get a Rebate on a BMW EV?
The good news is that BMW shoppers can still save $7,500 – or more – on a new BMW EV. BMW has decided to pass on the $7,500 credit that commercial leasing companies receive to the customer – that’s you – and even occasionally offers Loyalty and other incentives on top. As of this writing, BMW advertises up to $8,500 off on a new BMW i4 lease with Loyalty. For those unaware, all Loyalty requires is currently owning or leasing BMW. Since this tax stipulation isn’t limited by MSRP or battery requirements, you’ll also see the rebate passed along on vehicles like the BMW iX. Currently, you’ll enjoy an impressive $9,900 rebate when you lease a 2024 BMW iX.
Unfortunately, BMW isn’t as kind regarding the PHEV range. Though vehicles like the X5 xDrive50e seem to be eligible for similar rebates, BMW doesn’t pass the savings along. So, if you’re shopping for a 330e or a similar BMW PHEV, be prepared to pay full price – even if you’re leasing.
Lower Prices on BMW EVs Will Help Offset Rebates
So, though many shoppers are out of luck if they’re looking for rebates, there is some good news on the horizon. BMW is working on battery facilities in South Carolina, where the iX5 and iX6 will eventually be built. That will drive overall costs down – at least in the US – and potentially make the vehicles eligible again.
Most automakers report slowing demand for EVs, and disappearing rebates could be a component. BMW remains consistent, though, likely due to a steady ramp-up in production and new, exciting models constantly debuting. In fact, the company celebrated a new annual record record of EV sales in Q4 of 2023.
BMW USA CEO Sebastian Mackensen has already publicly acknowledged slowing EV demand. But BMW still plans to bring as many as six fully electric models to Spartanburg. The future of EVs – while a little more expensive today than last year – is still looking positive.
