Electric Vehicle Tax Credit Information for 2021


If you've begun to consider making the switch to a plug-in hybrid or an all-electric vehicle, you're probably familiar with their compelling list of benefits including outstanding savings on fuel, exhilarating power delivery, and serene driving characteristics. There's also another tremendous advantage that comes from owning an electrified vehicle that you may have not previously considered.

Internal Revenue Code Section 30D provides a credit for certain Plug-In Electric Drive Motor Vehicles including passenger vehicles and light-duty trucks. This list includes several of the latest BMW models, helping to make your next vehicle purchase significantly more rewarding*. BMW of Ann Arbor is standing by to help you choose the right BMW PHEV or EV for your lifestyle.


Although often referred to as a discount on the vehicle's selling price, a tax credit is just that - a tax credit. This government policy allows certain buyers to claim an eligible tax credit against the federal income taxes they owe in the year in which they buy the car. Put simply, it reduces your tax liability. Should you qualify for a tax refund, you'll receive whatever the amount of your credit on top of your refund*.

Which BMW Models Qualify for the EV Federal Tax Credit*?

  • BMW i3 Sedan (2021) - $7,500
  • BMW i3 Sedan with Range Extender (2021) - $7,500
  • BMW i3s Sedan (2021) - $7,500
  • BMW i3s Sedan with Range Extender (2021) - $7,500
  • BMW X3 xDrive30e (2021) - $5,836
  • BMW X5 xDrive45e (2021) - $7,500
  • BMW 330e (2021) - $5,836
  • BMW 330e xDrive (2021) - $5,836
  • BMW 530e xDrive (2021) - $5,836
  • BMW 745e xDrive (2021/2022) - $5,836

*The 2022 BMW i4 and iX have not yet been certified as credit eligible by the IRS. Additional state incentives may also be available. Tax credits may be complex and are subject to change without notice. We recommend consulting a tax professional to validate credit availability and eligibility.



Convenient Charging Solutions - Whether you're headed across town or across the country, range anxiety concerns are a thing of the past thanks to advanced BMW EV charging solutions. Home charging station installation lets you wake up to a fully-charged vehicle each morning. You'll also have access to an ever-growing network of public charging stations that help you stay charged while on the go. Plug-in hybrid models also benefit from a conventional gasoline engine for backup, helping you get where you need to be without the need to worry about charging.

BMW EV/PHEV Battery Warranty - Backed by the confidence of an 8 Year / 80,000 Mile limited warranty, you'll enjoy peace of mind from knowing that your vehicle is protected for the long haul.

HOV Lane Access - Depending on the state, your BMW EV or PHEV can potentially qualify for access to HOV lanes. Skip the traffic and experience the freedom of emission-free commuting with an electric or plug-in hybrid vehicle.


*The information above does not constitute tax planning advice, as individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to individual tax situations.