amelen

Does anyone know if the EQS SUV would qualify for the $7,500 EV credit like this (and several others) suggest? The dealerships I spoke with were not sure either.https://www.consumerreports.org/cars...s-a7820795671/

JoeMa

I say yes, but only if you take delivery before Jan 1, 2023. The income limits and MSRP caps do not take effect until Jan 1 so since final assembly of the the EQS SUV is in the US, it should qualify IMO. My build request has not yet been allocated which means I will not take delivery this year, so I would not qualify for the $7500 credit. But if I were to take delivery before Jan 1, I would claim the credit.

bonboon

Unfortunately the answer is going to be no unless you have a "written binding contract" - by IRS definition, none of us do

stealth.pilot

I think as long as we take delivery in 2022 we are good. I have a $5000 non refundable deposit which I think makes it a binding contract.

bonboon

There's some talk about what threshold of loss is acceptable, as well. I read 5% of purchase price.

Non refundable deposits rare, so you are a step ahead of pretty much everyone having that in hand

mbelman

Actually, because the EQS SUV is made in the USA, as long as you take delivery in 2022 you don't have to worry about the whole "binding contract" issue. You will get the $7500 no matter what if you take delivery by 12/31/22. The transition contract point only comes into play if delivery occurs after 1/1/23.

bonboon

Good to know, so if vehicle built in US that negates the vehicle not meeting max purchase price and income thresholds? What a clusterf@#%$@# lol I'll never understand the new law

JoeMa

Not exactly, the EQS SUV qualifies for the tax credit as long as you take delivery by BEFORE January 1, 2023. Afterward, it will no longer qualify due to the price and for some, their income. The EQS sedan is already disqualified for the tax credit because it is not assembled in the US. At least that is what Mercedes told dealerships in a memo last month.

abhansali

To further clarify, I believe that the "built in America" provision of the law went into effect immediately after Biden signed the bill, and that took away tax credit for Porsche, EQS sedan and other EVs immediately. But EQS SUV is built in America so it still qualifies right now. But on Jan 1 2023, the other provisions of the law kick in that put caps on the price of the car, takes away volume caps on Tesla and GM and adds in income restrictions.

That's why after Jan 1, the EQS SUV won't qualify. The gray area is the binding contract, because if you have a binding contract in 2022 you can still get the credit even if you take delivery after Jan 1. But what qualifies as a "binding contract" is undefined.

On a side note, I heard from one sales person that during EQB training they said EQS SUV may not be released until late Dec or Jan at earliest. Anyone else heard this?

bonboon

hey guys, and correct me if i'm wrong, if you had a binding contract (before aug 16) for a vehicle not built in america, and you take delivery of that vehicle in 2022, then that vehicle qualifies as well, right?

variable229

Does anyone know the credit applied toward a lease immediate or only if you purchase? Does the $7500 credit against your IRS tax return?

JoeMa

The credit does not apply to leases, purchases only. The credit reduces your tax liability. For example, if you owe $5,500 in taxes, the credit would wipe that away but you would not get the remaining $2,000 as a tax refund. If you owe $7,500 or more in taxes, the entire credit would be applied.

variable229

That makes sense. Bummer was hoping MB financial would offer the $7500 lease bonus cash like they have on EQS sedan orders.

JoeMa

I didn't know about a cash bonus for the sedan, but MB Financial could decide to offer a similar promo on the SUV. Our local dealer was asking $50K above MSRP for a 580. They didn't get it of course but still had the nerve to ask that much.

drmanny3

My dealership in Santa Barbara is selling at MSRP. She told me that they will take the $7500 and use it in reducing the cost of a lease. Which is what I am thinking about doing.

bonboon

seeing quite a few around. not the best time for that price point, imo

SoCal888

@variable229 I believe leases will qualify for the tax credit (until MSRP/Income caps start in 2023). It will show as a type of dealer lease cash incentive in the deal sheet. That’s how Nissan dealt with the incentive. It was good for the customer because they received the benefit at the time of purchase (otherwise with cash purchase or purchase with a loan the buyer had to wait until they filed their taxes).

manitou202

First link shows the EQS SUV qualifies based on manufacturing location.

https://afdc.energy.gov/laws/electri...for-tax-credit

Second link explains the tax credit situation from now until the end of the year. It also explains what changes on January 1st, 2023 which will make the EQS SUV no longer qualified.

https://afdc.energy.gov/laws/409

"Vehicle Purchases Between August 17 and December 31, 2022Qualifying EVs purchased and delivered between August 17, 2022, and December 31, 2022, are eligible for the tax incentive as described above but are limited to vehicles with final assembly in North America. Manufacturer sales caps on vehicles apply. Note that for some manufacturers, the build location may vary based on the specific vehicle, trim, or the date in the Model Year when it was produced because some models are produced in multiple locations. The build location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the U.S. Department of Transportation’s VIN decoder or an information label affixed to the vehicle."

drmanny3

Some good points made. The dealerships do not have to benefit the buyer with respect to the $7500. I leased a number of BEV cars in the past. Sometimes the dealership extends the full amount as stated above in reducing the cost of the lease. It really depended on how much they wanted to get the sale. As noted above the $7500 is good for the cars delivered in 2022. Mercedes has not yet reached the 200,000 mark as is the case with Tesla. With a cost of $142k, I suspect the lease is going to be expensive. Not sure what the residual will be at 36 months. Also interest rates have been going up so I also think the money factor will be high. Not looking too good.

JoeMa

If you install a home EV charging station, the tax credit under the Inflation Reduction Act is 30% of the cost of hardware and installation, up to $1,000. Also, beginning in 2023, the tax credit for business and home installations, will apply to other EV charging equipment like bidirectional (two-way) chargers.

Emank

I purchased EQS SUV and will be delivered next week but I’m not sure if first the vehicle is qualified for $7500. The list of qualified vehicle from IRS doesn’t include 2023 EQS SUV https://www.irs.gov/businesses/irc-3...vehicle-credit
IRS form 8936 is what I need to file but it requires letter of certificate from the manufacturer. Does any of you get this letter from the dealer?

abhansali

At the top of the page click the link that says "Updated information for consumers as of August 16, 2022". This will take you to the updated requirements from the new Inflation Reduction Act signed by President Biden on Aug 16, 2022. The actual page is here.

https://www.irs.gov/businesses/plug-...30-and-irc-30d

On this page there is an updated link "The Department of Energy has provided a list of Model Year 2022 and early Model Year 2023 electric vehicles that may meet the final assembly requirement.". Click that and it will go to:

https://afdc.energy.gov/laws/electri...for-tax-credit
2023 Mercedes EQS SUV is listed here.

drmanny3

Good resources above. Bottom line, there will not be an issue with your taking advantage of the $7500 given you acquired the car prior to Jan 1, 2023. When I have claimed in the past, TurboTax walked me through the process. While the current resource only shows 2022 vehicles, you can understand that the model year 2023 vehicles are still in general not available. The rebate is not tied to 2022 model year cars. So even if let’s say you purchase a 2022 vehicle but take ownership on Jan 1, 2023, you would not be able to take the $7500 from your taxes. The rules change in Jan 1, 2023.

Emank

Do I need to ask the dealer to provide me with letter of certification? Just in case if I got my audited.

drmanny3

If you need a certificate, I would recommend you contact MBUSA and ask customer services.