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Anyone who says you can't are either painters of standard auto body paint & don't want to lose your business to powdercoaters or un-educated with regards to the processes involved in powdercoating magnesium wheels.
Let me try and clear up some misconceptions of powdercoating magnesium wheels. The ignition temp of magnesium is 1107F degrees and the melting point is 1202F degrees, the temps to powdercoat are 400 F for 10-15 minutes hardly high enough to have any detrimental effect on the magnesium.
Now, that said: PAY ATTENTION KIDS>
Magnesium does burn, I mean BURN all by itself, self combust. So just be safe and do the cure at a lower temp but for a longer time. I used 340 degrees and did it just fine. Now, Ceramic coating is a different story. I wouldn't try that on magnesium.