Unfortunate for MY 2020 i3 Prospects: Say Adios to $7500 Fed Lease Credit - Bimmerfest - BMW Forums



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  #1  
Old 01-10-2020, 09:34 AM
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Unfortunate for MY 2020 i3 Prospects: Say Adios to $7500 Fed Lease Credit

Say goodbye to the $7,500.00 Credit i3 prospects moving forward for Model Year 2020 i3 variants.
Please don't shoot the messenger..



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Last edited by Jon Shafer; 01-10-2020 at 09:53 AM.
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  #2  
Old 01-10-2020, 06:55 PM
BMW_F1 BMW_F1 is offline
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Are you sure? The IRS lists it as a qualifying vehicle: https://www.irs.gov/businesses/irc-3...vehicle-credit
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  #3  
Old 01-10-2020, 08:25 PM
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Originally Posted by BMW_F1 View Post
Are you sure? The IRS lists it as a qualifying vehicle: https://www.irs.gov/businesses/irc-3...vehicle-credit

Quite sure. My data source direct from BMWNA TODAY.

I would post a copy of the January PLAYBOOK that shows this, but I would do so at my own peril.

I was so shocked when I saw it (since I had two fresh pending orders) that I queried my factory rep who knew nothing and got final confirmation from Woodcliff Lake.
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  #4  
Old 01-10-2020, 11:29 PM
ard ard is offline
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So the IRS is wrong or BMWNA is wrong....

A coin toss.

Looks like Tesla hit 200k in sales, which triggered a phase out. But wood cliff lake is indicating the bmw program ends w no phaseout? Hmm...
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Old 01-11-2020, 08:26 AM
namelessman namelessman is offline
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Originally Posted by Jon Shafer View Post
Quite sure. My data source direct from BMWNA TODAY.
What is the reason that i3 is now excluded? At least the non-Rex i3 surely is pure EV, it is hard to comprehend how that does not qualify for $7500.

My guess is that BMWNA makes a mistake somehow, assuming there is no change in i3 spec.
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Old 01-11-2020, 09:26 AM
jjrandorin jjrandorin is offline
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So the IRS is wrong or BMWNA is wrong....

A coin toss.

Looks like Tesla hit 200k in sales, which triggered a phase out. But wood cliff lake is indicating the bmw program ends w no phaseout? Hmm...
If its actually federal phase out, that takes 1 year after a company hits defined sales targets, with decreasing amounts available every quarter (Im familiar with this since as most of you know I have a model 3 and follow tesla fairly closely).

Taking a quick look at that IRS link provided, Checking BMW, it shows that the 2020 NON range extender version (full BEV) is eligible, while the range extender version stops at 2019.

@Jon, any chance what you are reporting on (and deals you were working on / vin you were asking about ) was the i3 Range extender version, and not "all" i3's?

I suspect that one of two things is correct.. Either...

1. The information provided by BMW NA was speaking specifically about the Range extended version, and the full battery version is still eligible..

OR

2. BMW NA has made a decision to not provide lease credit discounts for the tax credit for any i3, because one model of it is not eligible.

If someone is paying cash, they would be filing with the IRS, so since the 2020 full battery shows eligible, if they buy that version they should be able to claim it on their taxes. I would think, however, that most NEW i3s are leased, and BMW may be not extending lease credit for incorporating the tax credit for the series. On a lease, BMW owns the car, and they dont have to share any tax credits at all if they dont want to.

I suspect its some combination of the above.
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  #7  
Old 01-11-2020, 09:58 AM
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Quote:
Originally Posted by jjrandorin View Post
If its actually federal phase out, that takes 1 year after a company hits defined sales targets, with decreasing amounts available every quarter (Im familiar with this since as most of you know I have a model 3 and follow tesla fairly closely).

Taking a quick look at that IRS link provided, Checking BMW, it shows that the 2020 NON range extender version (full BEV) is eligible, while the range extender version stops at 2019.

@Jon, any chance what you are reporting on (and deals you were working on / vin you were asking about ) was the i3 Range extender version, and not "all" i3's?

I suspect that one of two things is correct.. Either...

1. The information provided by BMW NA was speaking specifically about the Range extended version, and the full battery version is still eligible..

OR

2. BMW NA has made a decision to not provide lease credit discounts for the tax credit for any i3, because one model of it is not eligible.

If someone is paying cash, they would be filing with the IRS, so since the 2020 full battery shows eligible, if they buy that version they should be able to claim it on their taxes. I would think, however, that most NEW i3s are leased, and BMW may be not extending lease credit for incorporating the tax credit for the series. On a lease, BMW owns the car, and they dont have to share any tax credits at all if they dont want to.

I suspect its some combination of the above.

As our Fearless Leader would say...... "BELIEVE ME".

The credit is still applicable for Model Year 2019s, but for Q1 2020 (all variants), unequivocally, there is no longer a $7500.00 credit.

I would post the actual bulletin and email exchange with Factory Brass, but this is not worth losing my job over...




Please note, I did not receive a definitive "NO" as to the likelihood this might change later, but for January, you can take this to the bank.

My suspicion, based on empirical observation, I would say that it is that it has something to do with product shortage, age, event model phase-out, etc.

$$$ Marketing "Sales Support" being directed where we actually have available inventory..?

.
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Last edited by Jon Shafer; 01-11-2020 at 10:05 AM.
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  #8  
Old 01-11-2020, 10:18 AM
namelessman namelessman is offline
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Originally Posted by Jon Shafer View Post
The credit is still applicable for Model Year 2019s, but for Q1 2020 (all variants), unequivocally, there is no longer a $7500.00 credit.
Yes this makes sense, being $7500 federal credit is not passed to leases.

But as JJ said, purchased/financed i3/i3s non-Rex 2020 can still claim $7500 tax credit on federal tax return per IRC 30D.
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  #9  
Old 01-11-2020, 10:27 AM
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Originally Posted by namelessman View Post
Yes this makes sense, being $7500 federal credit is not passed to leases.

But as JJ said, purchased/financed i3/i3s non-Rex 2020 can still claim $7500 tax credit on federal tax return per IRC 30D.

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Old 01-11-2020, 11:30 AM
ard ard is offline
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Hmmm. Someone wanna go back and add "For LEASES" to the first post...


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Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
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  #11  
Old 01-11-2020, 11:51 AM
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Jon Shafer Jon Shafer is offline
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Originally Posted by ard View Post
Hmmm. Someone wanna go back and add "For LEASES" to the first post...





It's funny because in my own ignorance coming back after being away for three years I had already assumed that this was all already the state of the rebate.
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  #12  
Old 02-03-2020, 12:12 PM
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Great news to report!

$7,500 LEASE CREDIT IS BACK FOR FEBRUARY!!

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  #13  
Old 02-04-2020, 10:34 AM
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Jon Shafer Jon Shafer is offline
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Test

https://www.linkedin.com/feed/update...9125466234880/
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Last edited by Jon Shafer; 02-04-2020 at 10:36 AM.
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