The BMW ActiveHybrid 7-Series is the fourth BMW model to qualify for a tax credit under U.S. government rules - But the $900 (€735) tax credit hardly puts a dent in the model's $103,125 (€84,251) starting price.

The U.S. government has announced that the BMW ActiveHybrid 7-Series qualifies for a $900 (€735) federal tax credit under the Alternative Motor Vehicle provision. The Internal Revenue Service certified the tax credit for the model today.

But that still keeps the price for the 2011 BMW ActiveHybrid 7-Series at over $100,000. Starting price for the model, including destination charges but not including the tax credit, is $103,125 (€84,251). The long wheelbase version begins at $107,025 (€87,437).

The certification now adds the ActiveHybrid 7-Series to the ActiveHybrid X6, the 335d and the X5 xDrive35d to the set of BMW models which qualify for the tax credit.

The ActiveHybrid 7-Series features the same 4.4 liter V8 engine with 455 PS (335 kW) and 516 lb-ft (700 Nm) as the 750i, only with a mild-hybrid system (electric motor powers only the electronics of the car) and stop/start technology to improve fuel economy by around 15 percent. The power train coupled to the 8-speed transmission takes this BMW flagship model from 0 to 60 mph (96 km/h) in 4.7 seconds.

Gallery: BMW ActiveHybrid 7 gets $900 tax credit, but still costs $100K +

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