Bye Bye Tax Credit for Mercedes EQ's
Junior Member
Joined: Dec 2021
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EQS 580
Spoke with my dealer about this exactly. He said that because they technically don’t own the car until it’s delivered to them, they can’t do the binding agreement - but he said they and a bunch of dealers are talking to Mercedes corporate about whether anything can be done to issue purchase agreements that would work for the credit.
Super Member
Joined: Dec 2014
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From: New England/Florida
2005 SL 500. 2015 S550. 2016 GLE400 2018 S560
I’m pretty sure it goes by when you bought the car. You put in your vin number and it knows when you bought it. You should have no problem.
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From: Scottsdale AZ
2015 CLS 550 2015 ML 400 Previous 2020 GLB 250 2019 A 220 2005 ML 350 1989 300 E 2001 SL 500
Spoke with my dealer about this exactly. He said that because they technically don’t own the car until it’s delivered to them, they can’t do the binding agreement - but he said they and a bunch of dealers are talking to Mercedes corporate about whether anything can be done to issue purchase agreements that would work for the credit.
Member
Joined: Mar 2013
Posts: 116
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From: NE Florida
2023 EQS 580
I disagree. This new bill does not “tap the brakes” it accelerates. It removes incentives for individuals they believe are price inelastic. It actually incentivizes more sales, especially domestic, union made vehicles. I wish they would have left it alone for 2022. I was hoping to get the tax credit that has been in place for the last 10 years. This will be our first BEV.
Junior Member
Joined: Dec 2021
Posts: 37
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EQS 580
I disagree. This new bill does not “tap the brakes” it accelerates. It removes incentives for individuals they believe are price inelastic. It actually incentivizes more sales, especially domestic, union made vehicles. I wish they would have left it alone for 2022. I was hoping to get the tax credit that has been in place for the last 10 years. This will be our first BEV.
Member
Joined: Jan 2021
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911
Good news. the Tax credit will be in effect throughout 2022
On the InsideEVs website, there is an article that states that the Tax credit will be in effect throughout 2022 and that this is because many of the new rules won't go into effect until January 1, 2023, at which time the more expensive vehicles will become ineligible.
Assuming that the reporting is accurate.
Assuming that the reporting is accurate.
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Joined: Apr 2019
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From: Scottsdale AZ
2015 CLS 550 2015 ML 400 Previous 2020 GLB 250 2019 A 220 2005 ML 350 1989 300 E 2001 SL 500
On the InsideEVs website, there is an article that states that the Tax credit will be in effect throughout 2022 and that this is because many of the new rules won't go into effect until January 1, 2023, at which time the more expensive vehicles will become ineligible.
Assuming that the reporting is accurate.
Assuming that the reporting is accurate.
Only Tuscaloosa-built Mercedes-EQ vehicles will qualify as the law requires final assembly in North America
Effective January 1, 2023, in addition to final assembly in North America, the following conditions apply:
MSRP cap of $80,000 for Sports Utility Vehicles (SUVs) and $55,000 for sedans
Buyer income eligibility: Maximum $150,000 for an individual; $225,000 for the head of household; $300,000 for joint
filing
Max $7,500 credit is based off of separate critical minerals and battery components sourcing requirements, each of
which is valued at $3,750 (for a total of $7,500 possible credit)
The Federal Electric Vehicle Tax Credit sunsets on December 31, 2032.
Junior Member
Joined: Jan 2022
Posts: 44
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EQS 580
For sales occurring between the date the bill is signed into law and December 31, 2022:
Only Tuscaloosa-built Mercedes-EQ vehicles will qualify as the law requires final assembly in North America
Effective January 1, 2023, in addition to final assembly in North America, the following conditions apply:
MSRP cap of $80,000 for Sports Utility Vehicles (SUVs) and $55,000 for sedans
Buyer income eligibility: Maximum $150,000 for an individual; $225,000 for the head of household; $300,000 for joint
filing
Max $7,500 credit is based off of separate critical minerals and battery components sourcing requirements, each of
which is valued at $3,750 (for a total of $7,500 possible credit)
The Federal Electric Vehicle Tax Credit sunsets on December 31, 2032.
Only Tuscaloosa-built Mercedes-EQ vehicles will qualify as the law requires final assembly in North America
Effective January 1, 2023, in addition to final assembly in North America, the following conditions apply:
MSRP cap of $80,000 for Sports Utility Vehicles (SUVs) and $55,000 for sedans
Buyer income eligibility: Maximum $150,000 for an individual; $225,000 for the head of household; $300,000 for joint
filing
Max $7,500 credit is based off of separate critical minerals and battery components sourcing requirements, each of
which is valued at $3,750 (for a total of $7,500 possible credit)
The Federal Electric Vehicle Tax Credit sunsets on December 31, 2032.
MBWorld Fanatic!
Joined: Apr 2019
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From: Scottsdale AZ
2015 CLS 550 2015 ML 400 Previous 2020 GLB 250 2019 A 220 2005 ML 350 1989 300 E 2001 SL 500
MBWorld Fanatic!
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From: Reading PA
26 EQS 400 SUV, 23 EQS 580 SUV (sold), 19 X7 (sold), 17/14 GLS550 (sold), 13 GL550 (sold)
The rules are defined on the Treasuries web site:
https://home.treasury.gov/news/press-releases/jy0923
This paragraph states you must have a written binding contract before Aug 16, 2022 to qualify for a tax credit under the previous rules:
The final assembly requirement does not apply until after the Inflation Reduction Act’s enactment on August 16, 2022. Individuals who entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), can claim the EV credit based on the rules that were in effect before the Inflation Reduction Act’s enactment.
Doubtful the IRS will view a refundable deposit as a written binding contract.
https://home.treasury.gov/news/press-releases/jy0923
This paragraph states you must have a written binding contract before Aug 16, 2022 to qualify for a tax credit under the previous rules:
The final assembly requirement does not apply until after the Inflation Reduction Act’s enactment on August 16, 2022. Individuals who entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), can claim the EV credit based on the rules that were in effect before the Inflation Reduction Act’s enactment.
Doubtful the IRS will view a refundable deposit as a written binding contract.
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Joined: Feb 2014
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From: Iowa
2025 EQS580
Okay, here’s my simple question since there’s a lot of confusion as to who qualifies for the $7,500 tax credit:
If the EQS was either leased or purchased prior to August 16, 2022, does that mean that we automatically get the $7,500 tax credit? Thank you!
If the EQS was either leased or purchased prior to August 16, 2022, does that mean that we automatically get the $7,500 tax credit? Thank you!
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From: Iowa
2025 EQS580
MBWorld Fanatic!
Joined: Feb 2014
Posts: 1,938
Likes: 396
From: Iowa
2025 EQS580
MBWorld Fanatic!
Joined: Apr 2019
Posts: 1,564
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From: Scottsdale AZ
2015 CLS 550 2015 ML 400 Previous 2020 GLB 250 2019 A 220 2005 ML 350 1989 300 E 2001 SL 500
No tax credit if you leased the car. Car must have been purchased.
MBWorld Fanatic!
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From: Iowa
2025 EQS580
Member
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911
MBWorld Fanatic!
Joined: Apr 2019
Posts: 1,564
Likes: 455
From: Scottsdale AZ
2015 CLS 550 2015 ML 400 Previous 2020 GLB 250 2019 A 220 2005 ML 350 1989 300 E 2001 SL 500
MBFS passes on the $7500 as an incentive, not a tax credit. You cannot claim a leased electric car on your taxes and get a credit. FYI, that incentive was already taken off the EQB and will be taken off the EQS soon.
MBWorld Fanatic!
Joined: Feb 2014
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From: Iowa
2025 EQS580
There seems to be a contradiction here on what you state and what a couple others are saying. I find it hard to believe that a dealer would be so generous as to give him both the old price ($7,000 less than new price) and a $7,500 incentive. By no means am I trying to give you a hard time. I’m just trying get this straight once and for all.
Member
Joined: Jan 2021
Posts: 152
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911
There seems to be a contradiction here on what you state and what a couple others are saying. I find it hard to believe that a dealer would be so generous as to give him both the old price ($7,000 less than new price) and a $7,500 incentive. By no means am I trying to give you a hard time. I’m just trying get this straight once and for all.
Regardless of all this - very happy driving the car.
