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

Due to the Inflation Reduction Act of 2022, plug-in hybrid and all-electric vehicles purchased after August 16, 2022 may not qualify or may not quality for the full amount of the Federal Tax Credit. Visit https://www.fueleconomy.gov/feg/taxevb.shtml to learn more and see the complete detials.

If you are the proud owner of a new 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.

Here at Mercedes-Benz of Caldwell, we provide our drivers with valuable federal tax credit details they may qualify for by being the owner of a new electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV).

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

The main difference between electric vehicles and plug-in hybrid electric vehicles is that EV models run solely on electric components while PHEV models use a combination of both gasoline and electricity as fuel sources.

Electric Vehicles (EV)

All-electric models offer drivers a more modern, progressive driving experience. The battery under your all-electric Mercedes-Benz model power your vehicle and is charged by an electric power source. The use of electricity replaces traditional liquid fuel components,

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 combine a gasoline tank and electric battery to power your luxury vehicle. These types of vehicles are 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).

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?

To claim your federal tax credit for being an EV or PHEV Mercedes-Benz driver, 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 Mercedes-Benz of Caldwell

If you have any questions about your federal tax credit eligibility, please contact our team today! Our finance team is more than happy to assist you.

We also encourage you to shop from our online express inventory to find your next all-electric or plug-in hybrid Mercedes-Benz sedan and SUV. Serving the Montclair and Livingston areas, Mercedes-Benz of Caldwell is more than happy to help!