BMW response to the diesel tax credit for 10 X5

[ABMW]

It started out at $1,800 in the first half of the year, but then switched to $900 in the later half. That is my understanding, at least, from the tax literature I've been able to locate.

I could be wrong, but I'm 99.9% sure it's $900.00 if you purchased after the middle part of the year.

It's a similar system with most hybrid and other eco-credits. Usually you only get the full benefit if you purchase early in the year.

Depending on your tax rate: an $1,800 deduction could be akin to giving you $900.00+
a $900.00 deduction would be akin to giving you a $450.00+ sum of money

Either way, it's a small credit and not the end of the world.

[Penguin]

Originally Posted by ABMW

It started out at $1,800 in the first half of the year, but then switched to $900 in the later half. That is my understanding, at least, from the tax literature I've been able to locate.

I could be wrong, but I'm 99.9% sure it's $900.00 if you purchased after the middle part of the year.

It's a similar system with most hybrid and other eco-credits. Usually you only get the full benefit if you purchase early in the year.

Depending on your tax rate: an $1,800 deduction could be akin to giving you $900.00+
a $900.00 deduction would be akin to giving you a $450.00+ sum of money

Either way, it's a small credit and not the end of the world.

(1) It's a tax credit, not a deduction... you subtract the entire amount form the tax you pay, e.g., if the credit is $900, you pay $900 less in taxes, and

(2) The reduction happens based on the number of vehicles sold. BMW is far, far, far away from selling enough diesels for the tax credit deduction to kick-in yet. If it has been reduced from $1,800 to $900, it is not due to time or sales volume.

[bigx5er]

My guess is the $1800 remains in effect for the 2010 X5 35d.

Here is what Mercedes website says about the credit for their diesel models. Notice they mention the year of purchase, not the model year (neither Mercedes or BMW are close to 60,000 sales). Also note that Audi and VW cars have renewed for 2010 at the same rates as the 2009 models.

"Beginning after 12/31/08, taxpayers affected by the Alternative Minimum Tax (AMT) will be eligible for the full Alternative Motor Vehicle Tax Credit (30B). Currently three Mercedes-Benz BlueTEC vehicles qualify for the 30B credit: ML350 ($900), R350 ($1550), and the GL350 ($1800). Therefore, if you buy one of these vehicles in 2009 the government will subsidize the purchase through the credit regardless of income level. Please check with your tax advisor for details."

[LeMansX5]

BMW North America

[LeMansX5]

BMW North America

[Penguin]

Originally Posted by LeMansX5

BMW North America

Yeah, that's the problem. In one place BMW says $1,800, but under the "build your own" they show $900.

[ChuckG]

My guess is that until it is listed on this IRS website there is no tax credit for the 2010's. Hopefully it will be listed there before April 15th.

2010 Advanced Lean-Burn Vehicles

There is a $1800 tax credit listed for 2009's in this IRS website.

2009 Advanced Lean-Burn Vehicles

There is more information here. The tax credit begins to phase out after BMW sells 60,000 of the vehicles. They are no where near that.

Qualified Advanced Lean-Burn Technology Vehicles

Chuck