If you’re planning to buy a new BMW SUV, you may qualify for tax deductions under the One Big Beautiful Bill Act. There are six BMW SUVs that are applicable for these deductions since they meet assembly standards. Find out more about these deductions and which models are eligible with this guide courtesy of BMW of Fort Washington.
What Are These Tax Deductions?
Under the One Big Beautiful Bill Act, you can deduct up to $10,000 per year on new vehicles that finish assembly in the United States from 2025 to 2028. These tax deductions incentivize buying locally and supporting American manufacturing. There are currently 119 eligible models under this plan, which must be for personal use only and must be financed, not leased.
Which New BMW SUVs Are Eligible?
Currently, you can apply for these tax deductions on six BMW SUVs. Since assembly can change from year to year, ask your BMW sales professional about current models’ status. Also, remember that these tax deductions are only available if you purchase the vehicle new, not pre-owned or BMW Certified. The SUVs currently eligible for OBBBA tax deductions include:
- BMW X3
- BMW X4
- BMW X5
- BMW X6
- BMW X7
- BMW XM
How Do I Apply?
Qualifications depend on your income level and the vehicle you’re purchasing. The car must have been purchased after December 31st, 2024. You’ll know that your car had final assembly in the U.S. if the VIN starts with a 1, 4, or 5. The vehicle must be financed for personal use only; models used for commercial purposes are ineligible. This is an above-the-line deduction on your personal taxes, so you don’t need to itemize to claim these deductions.
Shop for a New BMW SUV in Fort Washington, PA
Now that you know which new BMW SUVs are eligible for tax deductions, it’s time to order your model. Contact BMW of Fort Washington today to schedule a test drive or compare financing plans.