Tax incentives designed to help promote the adoption of technology that is slightly more expensive but in the end, more fuel efficient, are growing rapidly. The Internal Revenue Service’s Alternative Motor Vehicle provision, for example, is targeted at reducing greenhouse gas emissions. BMW announced this week that its latest 2011 BMW ActiveHybrid 7 will be entitled to a $900 tax credit under the scheme.

The standard and long-wheelbase versions of the ActiveHybrid 7, which are rolling into showrooms across the country as you read this, become the fourth and fifth BMW models to qualify for the special tax credit, joining the ActiveHybrid X6 and 335d Sedan and X5 xDrive35d clean diesel models.

BMW boasts that the tax credits are further recognition of the strengths of its EfficientDynamics strategy, though we doubt any buyers willing to fork over the $102,300 asking price for the standard ActiveHybrid 7 or the $106,200 for the long-wheelbase model will even notice.

Qualifying for the Alternative Motor Vehicle credits is impressive considering the ActiveHybrid 7’s performance. Featuring an electric motor matched with a 4.4-liter twin-turbocharged V-8 and a new eight-speed automatic transmission, the big sedan can accelerate from 0-60 mph in just 4.7 seconds--all while delivering EPA fuel economy estimates of 17 mpg city and 26 mpg highway, a near 18 percent improvement over the similarly powerful 750i/Li.

For a more detailed report, check out our previous story by clicking here.

[BMW]