ANN ARBOR, Mich., June 8, 2010 -- BMW has announced that its ActiveHybrid 7 model qualifies for up to a $900 tax credit under the IRS’s Alternative Fuel Motor Vehicle Credit program.

The Alternative Fuel Motor Vehicle Credit was enacted by the Energy Policy Act of 2005 and includes separate credits for four distinct categories of vehicles: Qualified Hybrid Vehicles; Qualified Fuel Cell Vehicles; Qualified Alternative Fuel Motor Vehicles (QAFMV) and Heavy Hybrids; and Advanced Lean-Burn Technology Vehicles.

The amount of the potential credit varies from $400 to $4,000 based on fuel economy, the type of vehicle and which of the four credits applies.

BMW’s ActiveHybrid 7 combines an electric motor with a 4.4-liter twin-turbo V8 engine and a new 8-speed automatic transmission. Accelerating from 0 to 60 mph takes 4.7 seconds with EPA fuel economy estimates of 17/26 mpg city/highway – a near 18 percent improvement over the non-hybrid 750i/Li.

Contributing to ActiveHybrid 7’s green merits is an Engine Start/Stop feature that avoids engine idling in stop-and-go traffic and at stoplights. A lithium-ion battery lets the radio, Bluetooth phone connection, air-conditioning and other features remain on when the engine is off.

Standard and long-wheelbase ActiveHybrid 7 models are the fourth and fifth BMW cars to qualify for the Alternative Motor Vehicle Tax Credit, joining the ActiveHybrid X6 and BMW’s Advanced Diesel 335d Sedan and X5 xDrive35d.