Jesse Cannon-Wallace

EV Tax Credits for Mercedes-Benz EQ Models – Some Ending with the Inflation Reduction Act

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As of August 16, 2022, there have been changes to the Federal Electric Vehicle Tax Credit that will effect the eligibility of several EQ models. Please consult a tax professional to determine your personal eligibility! 

Starting on August 16, 2022: To qualify for a Federal Electric Vehicle Tax Credit the vehicle must have final assembly in North America. That disqualifies the EQS and EQB. The EQS SUV may qualify if it is released for sale before December 31st. 

Starting January 1, 2023: To qualify for the Federal Electric Vehicle Tax Credit there are several stipulations.

  • Final Assembly must be in North America
  • MSRP cap of $80,000 for SUVs and $55,000 for Sedans
  • Buyer Income eligibility: $150k max individual, $225k max for head of household and $300k max for joint
  • Max $7500 credit based on separate critical minerals and battery components sourcing requirements, each valued at $3750, $7500 possible total credit
  • Federal Electric Vehicle Tax Credit sunsets December 31, 2032 

So, what that means for Mercedes EQ models:

  • EQS and EQB are assembled overseas. Immediately ineligible. 
  • EQS SUV is assembled in Tuscaloosa, Alabama. Eligible until December 31, 2022. It will be ineligible in 2023 because of the MSRP. 
  • Upcoming EQE SUV will be built in Tuscaloosa, Alabama but we do not know if it will be under the $80k SUV MSRP cap. 

This information is current as of 8/16/2022. It could change! Again, consult a tax professional!

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Jesse Cannon-Wallace

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