[P1]

Let's just say I'm happy I got my 45e.

[Foosman]

Anyone hear if 50e will qualify for federal tax credit in 2024?

[TurtleBoy]

Originally Posted by Foosman

Anyone hear if 50e will qualify for federal tax credit in 2024?

No word yet, hopefully within the next few weeks.

[eelnoraa]

So even with all requirements fitted in, the fed incentive is only $3750 for 50e? I think I read somewhere before, it described $7500. Does it mean 50e battery either components or chemicals don’t meet the sourcing requirement ?

[TurtleBoy]

Originally Posted by eelnoraa

So even with all requirements fitted in, the fed incentive is only $3750 for 50e? I think I read somewhere before, it described $7500. Does it mean 50e battery either components or chemicals don’t meet the sourcing requirement ?

I will answer it in regards to 2023 since we do not know yet for 2024. For this year is only qualifies for $3,750 since it does not meet both of the battery requirement categories. While they don't make it public, it is assumed it meets the assembly requirement and not the critical materials one.

You may be thinking of the commercial clean vehicle credit. It qualifies for the $7,500.

[eelnoraa]

Originally Posted by TurtleBoy

I will answer it in regards to 2023 since we do not know yet for 2024. For this year is only qualifies for $3,750 since it does not meet both of the battery requirement categories. While they don't make it public, it is assumed it meets the assembly requirement and not the critical materials one.

You may be thinking of the commercial clean vehicle credit. It qualifies for the $7,500.

Thank you. Concise and precise as usual. 👍

[Foosman]

Not new news, but new to me so thought I would share...not online until 2026 though.
https://www.bmwgroup-werke.com/spart...-Woodruff.html

[Dickens]

You might find these links interesting. The first link explains how it will be easier to get an instant rebate in 2024.

https://www.npr.org/2023/12/28/12191...sla-ford-vw-gm

https://finance.yahoo.com/news/2024-...170617149.html

https://home.treasury.gov/news/press-releases/jy1783

[TurtleBoy]

Originally Posted by Dickens

You might find these links interesting. The first link explains how it will be easier to get an instant rebate in 2024.

https://www.npr.org/2023/12/28/12191...sla-ford-vw-gm

https://finance.yahoo.com/news/2024-...170617149.html

https://home.treasury.gov/news/press-releases/jy1783

Just something to keep in mind, as far as I have been able to determine the section in the NPR article stating that the tax liability no longer matters is not correct. From everything I have seen from the IRS and the actual legislation, the credit is still nonrefundable and will be limited at filing time to what your liability is.

[PantsA10]

EPA website updated for 2024 not listing any eligible BMWs.

[TurtleBoy]

Originally Posted by PantsA10

EPA website updated for 2024 not listing any eligible BMWs.

They were a month or so late with the paperwork in the Spring, hopefully that is the case this time. My guess so, is the 50e won't qualify.

[johnonroad]

Looks like the 50e will not qualify for tax credits in 2024 based on these articles. According to Reuters, only 19 vehicles qualify as of today with both BMW and Audi out.

https://www.reuters.com/business/aut...af-2024-01-01/

[eluded]

as of today its not on the governments website as qualifying

[Dickens]

It looks as if BMW may not have as yet, submitted the required paperwork to the gov.

https://fueleconomy.gov/feg/tax2023.shtml

[TurtleBoy]

Like some other manufactures, they may have to make changes to their supply chain in order to meet the new requirements. Perhaps that is why thy halted production of the 50e for a few months.

[M3inM3]

So I just learned that dealers need to file IRS form 15400 when selling vehicles that qualify for the federal tax credit, which an adequately equipped X5 50e does. This form needs to be completed by the seller and reported to the IRS by 1/15/2024 as well as a copy made to the buyer at the time of purchase. If this is not reported by 1/15/2024, the buyer will not be able to qualify for the federal tax credit. Typical IRS BS for holding buyers accountable for the seller's responsibility. I was never made aware of this requirement and this form was never completed as far as I am aware when purchasing my X5 50e. Will need to see what I can do with the dealership the first thing next week.

[TurtleBoy]

Originally Posted by M3inM3

So I just learned that dealers need to file IRS form 15400 when selling vehicles that qualify for the federal tax credit, which an adequately equipped X5 50e does. This form needs to be completed by the seller and reported to the IRS by 1/15/2024 as well as a copy made to the buyer at the time of purchase. If this is not reported by 1/15/2024, the buyer will not be able to qualify for the federal tax credit. Typical IRS BS for holding buyers accountable for the seller's responsibility. I was never made aware of this requirement and this form was never completed as far as I am aware when purchasing my X5 50e. Will need to see what I can do with the dealership the first thing next week.

You will be fine and should have no problem getting the credit. There is no need for them to give you the form, which I think was only created later in the year, as it just contains general information about the vehicle. While it is in the guidance to do so I have not heard of any dealer doing it.

As far as them reporting the sales, the process for that was only just established. As mentioned multiple times (dealers have been asking about it) in the 12/20/23 IRS FAQ on the credits they were still establishing the procedures for how the dealers will submit the time of sale reports for 2023 sales.

"A Form 15400 (Time of Sale) needs to be filled out for all 2023 sales. For vehicle sales occurring in calendar year 2023, sellers must file reports within 15 days after the end of the calendar year, or no later than 01/15/2024.

The IRS will soon provide more information about how dealers can submit 2023 time of sale reports. Dealers/sellers should not use IRS ECO to submit reports for sales that occurred prior to the launch of the time of sale function in IRS ECO. Dealers/sellers will use IRS ECO to submit reports for sales occurring on and after January 1, 2024."

https://www.irs.gov/credits-deductio...e-registration

I would imagine dealers will be submitting the information and all will be well.

[M3inM3]

Originally Posted by TurtleBoy

You will be fine and should have no problem getting the credit. There is no need for them to give you the form, which I think was only created later in the year, as it just contains general information about the vehicle. While it is in the guidance to do so I have not heard of any dealer doing it.

As far as them reporting the sales, the process for that was only just established. As mentioned multiple times (dealers have been asking about it) in the 12/20/23 IRS FAQ on the credits they were still establishing the procedures for how the dealers will submit the time of sale reports for 2023 sales.

"A Form 15400 (Time of Sale) needs to be filled out for all 2023 sales. For vehicle sales occurring in calendar year 2023, sellers must file reports within 15 days after the end of the calendar year, or no later than 01/15/2024.

The IRS will soon provide more information about how dealers can submit 2023 time of sale reports. Dealers/sellers should not use IRS ECO to submit reports for sales that occurred prior to the launch of the time of sale function in IRS ECO. Dealers/sellers will use IRS ECO to submit reports for sales occurring on and after January 1, 2024."

https://www.irs.gov/credits-deductio...e-registration

I would imagine dealers will be submitting the information and all will be well.

I appreciate your input! So from what you are saying, even if a dealer fails to report anything related to clean air vehicle sales to IRS, as long as I file form 8936, all will be good for 2023 sales?

[TurtleBoy]

Originally Posted by M3inM3

I appreciate your input! So from what you are saying, even if a dealer fails to report anything related to clean air vehicle sales to IRS, as long as I file form 8936, all will be good for 2023 sales?

Yes, that is they way I interpret it but of course I don't work for the IRS. That said though, I think the dealers will provide the information plus my understanding is that the manufactures provide information on the vehicles also.