[BourbonJ]

Here’s an interesting point for anyone that bought a 2024 BMW X5 50e last year in 2023 and is going thru BMW buying back the 50e.
We bought our 50e in September 2023 and BMW finalized the Buyback payment with us in January 2024.

According to the Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After
Who Qualifies
The credit is available to individuals and their businesses.
To qualify, you must:
Buy it for your own use, not for resale
Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers

I brought this to the attention of my Tax preparer, who coincidently was going to a large Tax preparer’s conference.
He presenting this to the conference and they all agreed to the the Federal Tax Credit description and that a Lemon Law Manufacturer Buyback is not consider an owner trying to re-sell the vehicle.

Therefore an owner who bought the 2024 BMW X5 50e in good faith for personal use, not for resale intent, can claim the $3,750 Federal Tax Credit for PHEV, despite BMW buying the 50e back.

The new vehicle tax credit is assigned to a vehicle VIN and can only be used once. If BMW re-sells the buyback 50e in 2024, the new owner wouldn’t be able to claim the tax credit anyways since its been removed for this year.