Federal Tax Credits for New Mercedes-Benz All-Electric and Plug-in Hybrid Vehicles

For drivers in Riverside who are the owners of an all-electric or plug-in hybrid Mercedes-Benz sedan or SUV purchased new in or after 2010, you may be eligible for a federal income tax credit of up to $7,500.

As the progression of Mercedes-Benz models continues to rise, it is important to learn about what defines electric vehicles (EV) and plug-in hybrid vehicles (PHEV) and requirements that allow you to qualify and receive the available federal tax credit. Learn more from Walter’s Mercedes-Benz of Riverside today!

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What is the Difference Between an Electric Vehicle and Plug-In Electric Vehicle?

While both electric vehicles (EV) ad plug-in hybrid vehicles (PHEV) hold beneficial value in reducing carbon emissions and improving fuel economy, each type of vehicle is different in its drivetrain components and process of producing power. Electric vehicles are run solely on electricity, while plug-in Hybrid vehicles use both gasoline and electricity as fuel sources

Electric Vehicles (EV)

All-electric vehicles (EVs), or also known as battery electric vehicles (BEVs), are unlike your traditional gasoline vehicles. Utilizing a battery pack to store the electrical energy and power your motor and are charged by an electric power source. The use of electricity emits no exhaust from a tailpipe and replaces typical liquid fuel components, such as a fuel pump, fuel line, or fuel tank.

An electric vehicle’s fuel economy is reported in terms of miles per gallon of gasoline-equivalent (MPGe) or the number of miles the vehicle can go using a quantity of electricity.

Plug-In Hybrid Electric Vehicle (PHEV)

Plug-in hybrid electric vehicles (PHEVs) are a combination of a gasoline tank and battery, powering an internal combustion engine. PHEVs are typically charged by wall outlet or charging equipment, by the ICE, or through regenerative braking.

PHEV vehicles are comparable to gasoline vehicles but hold two fuel economy values: electricity range (MPGe) and gasoline capacity (MPG)

Eligible Electric and Plug-In Hybrid Mercedes-Benz Models

Mercedes-Benz Model Vehicle Type Maximum Credit
2022 EQS 450+ EV $7,500
2022 EQS 580 4MATIC® EV $7,500
2014-2017 B Class EV EV $7,500
2015-2017 S 550e Plug-In Hybrid PHEV $4,460
2016-2018 GLE 550e 4MATIC® PHEV $4,460
2018-2019 GLC 350e 4MATIC® PHEV $4,460
2020 GLC 350e 4M EQ PHEV $6,462
2020 S 560e EQ PHEV PHEV $6,462
2016-2018 C 350e PHEV $3,501

Federal Tax Credit Requirements

To be certified for the credit by the manufacturer, the vehicle must meet the following requirements:

  • The vehicle must be made by a manufacturer (i.e., it doesn’t include conventional vehicles converted to electric drive).
  • It must be treated as a motor vehicle for purposes of title II of the Clean Air Act.
  • It must have a gross vehicle weight rating (GVWR) of not more than 14,000 lbs.
  • It must be propelled to a significant extent by an electric motor that draws electricity from a battery that
  • has a capacity of not less than 4-kilowatt hours and
  • is capable of being recharged from an external source of electricity.

How Do I Claim My Federal Tax Credit?

Claiming your federal tax credit is easy! Simply fill out Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit.

For vehicles acquired for personal use, report the credit from Form 8936 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return.

For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).

If the qualifying vehicle is purchased for business use, the credit for the business use of an electric vehicle is reported on Form 3800, General Business Credit.

Learn More From Walter’s Mercedes-Benz of Riverside

To learn more about your eligibility for a federal tax credit for owning a Mercedes-Benz electric vehicle or plug-in hybrid vehicle, please do not hesitate to contact us or visit our flagship Mercedes-Benz dealership in Riverside.

Serving the San Bernardino, Corona, and Moreno Valley areas, Walter’s Mercedes-Benz of Riverside is more than happy to help!

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