BMW is rolling out its own set of incentives just as the federal government recently pulled the plug on electric vehicle tax credits. For customers, it means the window to still secure significant savings on a new BMW EV hasn’t closed entirely. At the heart of the offer is a $7,500 rebate on BMW’s entire lineup of fully electric models. Buyers of the i4, iX, or i7 will see that amount taken directly off the MSRP, a figure that will feel familiar to anyone who followed the federal clean vehicle credit. In many ways, BMW is stepping in to replace what Washington has now taken away.
Things are more complicated for plug-in hybrids. The new 750e xDrive sedan qualifies for a $5,000 discount, but the deal doesn’t extend to the 550e or the X5 xDrive50e, both of which remain full-price despite their popularity.
How Does The Rebate Work
There are, of course, some strings attached. The rebate is only available on vehicles financed through BMW Financial Services, and customers who lease won’t see the benefit. Delivery also has to be completed by November 1, 2025, a deadline that puts added pressure on buyers to act quickly.
On top of the purchase rebates, BMW is also making financing more attractive. For October, the brand is offering 2.99% APR financing for up to 60 months on a selection of its electric models. The deal covers several versions of the i4, including the eDrive40, xDrive40, and the high-performance M50. It also extends to the i5 M60 and multiple trims of the i7, from the eDrive50 and eDrive60 to the flagship M70.
The timing is far from coincidental. For years, the federal government offered a tax credit of up to $7,500 for qualifying EV and plug-in hybrid purchases, though the rules were notoriously complex. Automakers lost eligibility after selling more than 200,000 qualifying units, and the 2022 Inflation Reduction Act added even more restrictions, tying eligibility to where a car was assembled, where its battery materials were sourced, and even placing caps on MSRP and buyer income. Those changes alone had already knocked some BMWs, like the German-built i4, off the list of eligible models. Then, in September 2025, the entire program was sunset altogether, leaving no new EVs or PHEVs eligible for the credit.
In that light, BMW’s new rebate isn’t just a discount—it’s a bridge. By offering the same $7,500 figure the federal government once provided, BMW is keeping its electric lineup competitive in a market where rivals are also scrambling to replace lost incentives with their own rebates and financing offers.
More Backing Behind EVs
It’s also a signal of where the company’s priorities lie. With the Neue Klasse EVs set to debut in 2026, BMW needs to maintain momentum and customer interest in its current generation of electric cars. Extending a lifeline to EV buyers helps soften the landing from the loss of federal support.
When you apply BMW’s new $7,500 rebate, the offerings are enticing. The i4 eDrive40, for instance, effectively drops to around $50,400 and the i5 eDrive40 to $67,100.