BMW's 7-Series ActiveHybrid Gets $900 Federal Tax Credit OK
By John O'Dell June 4, 2010
It's not much, but considering the $102,300 base price of BMW's 2011 ActiveHybrid 7, every little bit may help - probably at least put a nice box of Cuban cigars in the buyer's humidor.
The big gas-electric sedan was approved today by the IRS for a $900 federal income tax credit for buyers under a federal incentive program for low-carbon, fuel efficient hybrid vehicles.
BMW's 2010 ActiveHybrid X6 previously was certified for a $1,550 tax credit.
The credits, good for qualified hybrids purchased through Dec. 31, are applied when a model is launched and are phased out once a manufacturer has sold 60,000 qualified models. That means the automakers with the best-selling hybrids, Toyota, Honda and Ford, have exhausted their credits while new players in the hybrid segment, such as BMW, can still offer the incentives.
A list of hybrid tax credits (not yet updated to include the 7-Series) can be found at the Energy Department's "fueleconomy.gov" site.
The BMW 7-Series hybrid mates an electric motor, lithium ion battery and related controls to BMW's .4-liter, twin-turbo V8. Power is handled through an eight-speed automatic transmission. the system also incorporates engine stop-start technology so the car doesn't waste gas and emit fumes while idling.
The EPA has rated the car at 17 mpg in city driving and 26 mpg on the highway, about 18 percent better fuel economy than the conventional gasoline-engine model.
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