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      10-21-2023, 02:40 AM   #1
BeEmVee
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Silly tax credit question 50e vs 40i in USA

The 50e is a plug in hybrid but the 40i also has a “mild” hybrid setup. I believe only the 50e gets the tax credit.. is this because it has a true electric mode of propulsion, even if only for a limited range, whereas the 40i has the ICE powering at all times and therefore doesn’t get any tax break? Can we even call the 40i a hybrid, or just a standard ICE with a tiny battery to help a few more systems perform more efficiently? Thanks for the insight!
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      10-21-2023, 08:56 AM   #2
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when you have two systems working together, it qualifies being called a hybrid no matter how small one system contributes to the other

for tax credit purposes, it's offered for vehicles that can fully propel in non-fossil fuel methods (electric, hydrogen, etc). the "mild hybrid" doesn't fit in that category, therefore doesn't qualify for a tax credit
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      10-21-2023, 09:22 AM   #3
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In addition to what was said above, among other qualifications there is a minimum size (7 kWh) that the battery needs to be in order to qualify for the tax credit and it needs to be able to be charged by an external source ie. being plugged in.
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      10-21-2023, 10:35 AM   #4
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Quote:
Originally Posted by TurtleBoy View Post
In addition to what was said above, among other qualifications there is a minimum size (7 kWh) that the battery needs to be in order to qualify for the tax credit and it needs to be able to be charged by an external source ie. being plugged in.
After the tax credit, they’re about the same price. I wonder how different the two models feel when driving. Perhaps 40i is lighter and more nimble and 50e is a straight line power workhorse.
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      10-21-2023, 11:36 AM   #5
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Quote:
Originally Posted by BeEmVee View Post
After the tax credit, they’re about the same price. I wonder how different the two models feel when driving. Perhaps 40i is lighter and more nimble and 50e is a straight line power workhorse.
The 50e has the air suspension, so it drives quite well and feels (to me at least) just as nimble.
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      10-21-2023, 11:40 AM   #6
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Quote:
Originally Posted by BeEmVee View Post
After the tax credit, they’re about the same price. I wonder how different the two models feel when driving. Perhaps 40i is lighter and more nimble and 50e is a straight line power workhorse.
I have not experienced the 50e but I think most will say you will have a more comfortable ride in the 50e but it will be as sporty as the 40i if not more so in Sport mode. I have air suspension on my 40i and find it the best of both worlds, very comfortable yet a bit sporty when wanted.
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      10-21-2023, 12:49 PM   #7
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Quote:
Originally Posted by Phasers View Post
The 50e has the air suspension, so it drives quite well and feels (to me at least) just as nimble.
Good point! Air suspension is nice, except when it comes time to replace one of those chambers.
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      10-21-2023, 01:02 PM   #8
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Quote:
Originally Posted by BeEmVee View Post
After the tax credit, they’re about the same price. I wonder how different the two models feel when driving. Perhaps 40i is lighter and more nimble and 50e is a straight line power workhorse.
Does 50e qualify for entire $7500? or 1/2 of it?

Keep in mind, there are a few other restriction, such as income and MSRP. In term of money, I don't think 50e make sense anymore as opposed to 45e. But I think most of X5 buyers, best bang for buck isn't the top priority

As for air suspension, I think it is nice as family car, very compliant. It also keep the car level even if I put something heavy in trunk. But long term maintenance cost is sure higher. The airbag will need to be replaced, just when. Fortunately, it isn't a complicated job, well with in the limit of average DIY.
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      10-21-2023, 01:04 PM   #9
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Originally Posted by eelnoraa View Post
Does 50e qualify for entire $7500? or 1/2 of it?
Just $3,750 for 2023, it is not known yet if it will for 2024.
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      10-21-2023, 01:22 PM   #10
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Quote:
Originally Posted by BeEmVee View Post
After the tax credit, they’re about the same price. I wonder how different the two models feel when driving. Perhaps 40i is lighter and more nimble and 50e is a straight line power workhorse.
some folks are more sensitive to the handling differences due to the 50e’s extra weight. it can still be argued to be an “ultimate drinking machine” hehehe
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      10-23-2023, 10:03 AM   #11
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Originally Posted by TurtleBoy View Post
Just $3,750 for 2023, it is not known yet if it will for 2024.
Well, depends under which section you're claiming the credit.

It qualifies for the full $7500 under the "Commercial Clean Vehicle Credit" section if you are purchasing through your business and have a corresponding tax liability to offset.

https://www.irs.gov/credits-deductio...vehicle-credit
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      10-23-2023, 10:06 AM   #12
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Quote:
Originally Posted by nZtiZia View Post
when you have two systems working together, it qualifies being called a hybrid no matter how small one system contributes to the other

for tax credit purposes, it's offered for vehicles that can fully propel in non-fossil fuel methods (electric, hydrogen, etc). the "mild hybrid" doesn't fit in that category, therefore doesn't qualify for a tax credit
Excellent and very simple explanation.
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      10-23-2023, 10:27 AM   #13
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Quote:
Originally Posted by Phasers View Post
Well, depends under which section you're claiming the credit.

It qualifies for the full $7500 under the "Commercial Clean Vehicle Credit" section if you are purchasing through your business and have a corresponding tax liability to offset.

https://www.irs.gov/credits-deductio...vehicle-credit

Correct, there is no partial credit for that since the battery requirements are not involved.
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      10-23-2023, 10:36 AM   #14
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Quote:
Originally Posted by Phasers View Post
Well, depends under which section you're claiming the credit.

It qualifies for the full $7500 under the "Commercial Clean Vehicle Credit" section if you are purchasing through your business and have a corresponding tax liability to offset.

https://www.irs.gov/credits-deductio...vehicle-credit
Good answer. And if it's not a 'commercial' sale, these other pages for 'individuals' should allow comparisons to consider:

https://www.irs.gov/credits-deductio...-2023-or-after

https://fueleconomy.gov/feg/tax2023.shtml
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      10-23-2023, 10:39 AM   #15
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Quote:
Originally Posted by BeEmVee View Post
I wonder how different the two models feel when driving. Perhaps 40i is lighter and more nimble and 50e is a straight line power workhorse.
I have a 45e with the air suspension and definitely find the ride to be more 'luxury' than 'sporty'. My old E70 with air suspension/Dynamic Handling/Active Steering felt like an absolute sports car compared to my G05, but my new one also weighs as much as my Ford Raptor so I give it a pass.

The ride *quality* is absolutely awesome with the air suspension, though.
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      10-23-2023, 06:22 PM   #16
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Change it to sport, and things change somewhat.
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