2010 Diesel Tax Credit
 

Just noticed on BMWUSA.com they have the tax credit as $900 not the $1800.....

I hope this is a mistake ... Seems like my reading of the IRS code has it as $1800 until ~60,000 units sold and then it begins a phase out..


Has the X5 Diesel entered the Tax credit phase out?

I don't think its phase out. It must have something to do with the fuel economy rating on 2010 vs. 2009. The amount of credit depends on relative fuel efficiency (vs base) but later is phased out when they sell a lot of cars.

I placed my order and gave deposit in late August. The language of the tax bill states that you get to keep the credit available on the day of purchase. Does it mean I could still argue for the $1800? Any tax lawyers on this forum?

Day of purchase is when you take delivery. Deposit date has no bearing.

It will be disapoining if its only $900. Will the car mags snoop it out to understand what happened, either on BMW's end or with the EPA/CARB testing. It may be difficult to get the $1,800 based upon deposits.

If BMW has ownership on this, they should step up and provide a $900 credit against online purchases for clothing or accessories to make us whole.

The credit is fed funded, has nothing to do with BMW. Why would they step up? Make you whole??? What did you lose?

they adverstised the $1,800 on their website and thru their dealers. It was all over the press. They've delayed shipments of 2010 35d models for some reason. If they made a change, and it affected fuel economy, then I lost $900.

It is likely a misprint on the web site...

I found the IRS DATA for the 2010.. does not include BMW

2010 Advanced Lean-Burn Vehicles

$1700 for a VW GOLF 4-door! WOW that is 8% of the base price!

not updated yet.

The same BMW 2010 X5 website that shows the $900 credit, also shows the EPA MPG did not change from 2009. This leads me to believe that:

(A) BMW has an error on their website and are showing a reduction of $1,800 to $900 by mistake, or,

(B) The IRS changed the rules, and perhaps recategorized the X5 into another class, essentially changing the rules mid-stream.

I did send an e-mail to BMW asking about it, and the response implied that there was indeed a reduction.

Here's what I got in response to my query:

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Dear Mr. Penguin:

Thank you for contacting BMW of North America, LLC regarding the Diesel Tax Credit. We appreciate your interest and enthusiasm for our vehicles.

The Diesel Tax Credit is strictly a government incentive. BMW NA has no control over what the government offers as an incentive. Unfortunately, we do not have information pertaining to why the incentive has changed.

However, BMW is still offering the $4,500 Eco Credit. Eco Credit is a $4,500 credit against the MSRP of the final purchase of the 335d and X5 xDrive35d Advanced Diesel through 11/02/2009. I suggest contacting your local BMW center to determine if they are a participating center. Should you need it, you will find a complete listing of authorized centers, categorized by name, state, or zip code, on our Website at BMW North America.

If you have any further comments or questions, please respond to this e-mail or contact the Customer Relations and Services Department at 1-800-831-1117, Monday through Friday from 9:00 A.M. to 9:00 P.M., Eastern Standard Time. Again, thank you for contacting BMW.

Sincerely,

Customer Rep
Customer Relations and Services
Representative
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As I said, it certainly implies they are aware of the reduction, but you never know, the Rep might just be lazy and responding with a general statement, rather than actually checking it out to see if it was a web data mistake.

One thing for sure, she's not telling the truth when she says "we do not have information pertaining to why the incentive has changed." I am quite sure that if the tax credit was reduced in half, BMW NA almost certainly knows the reason for the reduction.

P.S. Can you imagine Headquarters in Germany calling BMW NA and asking, "why did the U.S. Government tax credit for the X5 diesels get cut by half?," and BMW NA responding, "We have no information as we have no control over what the government offers as an incentive."