Diesel Tax Credit Information

NJ BMW Diesel auto shoppers can now take advantage of the BMW Advanced Diesel Tax Credit.

BMW Diesel Tax Credit Information

BMW of North America is pleased to announce the BMW Active Hybrid 7 Series models will qualify for the Internal Revenue Service Alternative Motor Vehicle Tax Credit. The tax credit is offered by the IRS to promote the purchase of vehicles that help to reduce emissions.

• The tax credit for purchasers of the Active Hybrid 7 Series is $900.
• The tax credit for purchasers of the Active Hybrid X6 is $1,550.

The standard and long-wheelbase versions of the Active Hybrid 7 become the fourth and fifth BMW models to qualify for the Alternative Motor Vehicle Tax Credit, joining the Active Hybrid X6 and BMW’s Advanced Diesel 335d Sedan and BMW Diesel X5 xDrive 35d.

• The tax credit for purchasers of the X5 xDrive 35d is $1,800.
• The tax credit for purchasers of the 335d is $900.

A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The qualification for this credit depends on a number of factors related to the tax payer’s individual tax liabilities. Customers looking to purchase a Hybrid or BMW Diesel engine vehicle should be aware of the following key points regarding the credit:

• The American Recovery and Reinvestment Tax Act of 2009 allows the taxpayer to use the Alternative Motor Vehicle Credit to offset BOTH regular tax liability AND Alternative Minimum Tax (AMT) liability for tax years 2009 and 2010. Prior to the enactment of this new law, the credit could not be used by taxpayers to lower their AMT.
• BMW Active Hybrid and Diesel vehicles must be purchased to qualify for the credit. Leased vehicles are not eligible.
• The credit is not processed by BMW NA, BMW FS, or the BMW Center. The credit should be claimed on the purchaser’s Income Tax Return—1040.

Customers interested in purchasing a vehicle should be made aware of the qualification for the Alternative Motor Vehicle Tax Credit. Client Advisors can communicate to the customer the potential for this tax credit to help offset the purchase price.

BMW Offers $4500 Eco Credit in addition to the Government Tax Credit. The $4500 Eco Credit is available on 2011 335d Diesel sales and the X5.35d Diesel.

NJ BMW shoppers can use this credit on a retail purchase or a lease. Call Circle BMW, an authorized NJ BMW Diesel cars dealer, at 732-982-2053 for more information and to purchase a Diesel Engine BMW.

Circle BMW offers the lowest BMW Diesel prices in NJ, stop in today!

Further information regarding the details of the credit should be obtained from the IRS.GOV website.