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Federal Tax Credit?

809 Views 38 Replies 5 Participants Last post by  LA EQE, 
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Since the MSRP for some Premium and Exclusive trims does not exceed $80,000, and they are assembled in the USA, the eligibility of the $7,500 federal tax credit should depend on the battery requirements ("critical minerals" and "battery components"). We know that the battery is also assembled in USA, but there is no information about where the components/minerals are coming from. Mercedes is not showing on the government web site that lists eligible vehicles, but it may be just because they are slow to react, and I could not find any discussion related to it, except early guesses that it may qualify based on MSRP and vehicle assembly. Does anyone have any additional information?
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galimpic said:
Since the MSRP for some Premium and Exclusive trims does not exceed $80,000, and they are assembled in the USA, the eligibility of the $7,500 federal tax credit should depend on the battery requirements ("critical minerals" and "battery components"). We know that the battery is also assembled in USA, but there is no information about where the components/minerals are coming from. Mercedes is not showing on the government web site that lists eligible vehicles, but it may be just because they are slow to react, and I could not find any discussion related to it, except early guesses that it may qualify based on MSRP and vehicle assembly. Does anyone have any additional information?
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It will be necessary to consider the price of optional equipment for your specific vehicle purchased, not just the base price.

Price cap
As of 2023, vans, SUVs and pickup trucks must have an MSRP, or manufacturer's suggested retail price, of $80,000 or under to qualify for the credit. Other vehicles, such as sedans and passenger cars, are capped at $55,000. For used vehicles, the price cap drops to $25,000.
For new vehicles, the MSRP, as defined by the IRS, is the base retail price provided by the manufacturer plus the retail price of each accessory or optional piece of equipment that is physically present on the car at the time of delivery to the dealer. For purposes of claiming the credit, MSRP does not include taxes and other fees added on by the dealer.
[2]

www.nerdwallet.com

EV Tax Credit: How It Works, What Qualifies - NerdWallet

The EV tax credit is a federal tax incentive for taxpayers looking to go green on the road. Here are the rules, qualifications and how to claim the credit.
www.nerdwallet.com www.nerdwallet.com
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I don't qualify for the Tax Credit because of my income but I did this... I sold my Tesla (desperately wanted to get rid of it but was waiting until I found a car I really liked) and leased a EQE SUV and got the full credit. I went to the dealer to get a EQS SUV (loved it), I drove both and decided I liked the size of the EQE SUV because 99% of the time it's just me and my dog :)

I believe (research it) MB EQS, EQS SUV, EQE SUV qualify for the lease full Tax Credit.

Here is the kicker, the EQS SUV payment would have been the same as the EQE SUV because of all the massive discounts and better lease deals on the EQS SUV :) In the end you have to get what is best for you!

www.carscoops.com

How To Get A $7,500 Tax Credit On Almost Any EV Lease Thanks To An IRA Loophole | Carscoops

Leasing electric cars classifies them as commercial vehicles and, as a result, they receive the full tax credit
www.carscoops.com www.carscoops.com
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Thank you, I am aware of the lease loophole, and also of the fact that MSRP needs to be 80K or less including the options. The question, however, was if anyone has info or comment about the battery that is getting installed in USA built EQE SUV, and if can satisfy the requirements for the tax credit.
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This is promising, though it does not answer your question directly.
driveelectric.alabama.gov

Mercedes EV to be made in Alabama will qualify for federal tax credit - Drive Electric Alabama

Mercedes-Benz will soon have three fully electric SUVs for sale in the U.S., including the smaller EQB and larger EQS SUV models already on sale. On Wednesday, it released prices for the middle model, the 2023 Mercedes EQE SUV. The EQE SUV has all the makings of a made-in-America EV. It’s due to...
driveelectric.alabama.gov driveelectric.alabama.gov
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galimpic said:
Thank you, I am aware of the lease loophole, and also of the fact that MSRP needs to be 80K or less including the options. The question, however, was if anyone has info or comment about the battery that is getting installed in USA built EQE SUV, and if can satisfy the requirements for the tax credit.
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Call your MB dealer tomorrow and ask them. It is frustrating or expected the IRS list is not the most current. Good luck!
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ScottC said:
This is promising, though it does not answer your question directly.
driveelectric.alabama.gov

Mercedes EV to be made in Alabama will qualify for federal tax credit - Drive Electric Alabama

Mercedes-Benz will soon have three fully electric SUVs for sale in the U.S., including the smaller EQB and larger EQS SUV models already on sale. On Wednesday, it released prices for the middle model, the 2023 Mercedes EQE SUV. The EQE SUV has all the makings of a made-in-America EV. It’s due to...
driveelectric.alabama.gov driveelectric.alabama.gov
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Yes, that is one in the series of similar articles from about 2 months ago when they announced that the price would be sub-80K, and that the battery is assembled in USA, too. However, since then, there is no new information, and EQE or Mercedes is not mentioned at all anywhere as a company that makes cars here. I am going for the lease since they pass the credit to me, and the MSRP for the trim/options I am looking for is a little over $80K anyway.
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galimpic said:
Yes, that is one in the series of similar articles from about 2 months ago when they announced that the price would be sub-80K, and that the battery is assembled in USA, too. However, since then, there is no new information, and EQE or Mercedes is not mentioned at all anywhere as a company that makes cars here. I am going for the lease since they pass the credit to me, and the MSRP for the trim/options I am looking for is a little over $80K anyway.
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My EQE SUV was 89K and I got the full 7500 tax credit on my lease. Call your dealer and see it you can get the credit on your lease.
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LA EQE said:
My EQE SUV was 89K and I got the full 7500 tax credit on my lease. Call your dealer and see it you can get the credit on your lease.
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I can, they offered it. I am not asking for my self, but in general.
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I am actually supposed to buy mine tomorrow. I wanted to get financing, as I always do, trading in my Tesla M3, but when me and the salesperson crunched the numbers for the lease, it made more sense, since it includes the $7,500 rebate. I've never leased before since I didn't see the point - you're locked into 2 or 3 years of paying the interest that is baked in without being able to put money towards the principal, you have to worry about the mileage and scratches, and have to carry the expensive 100/300/50 insurance, while your monthly payments are still higher than with financing, as those are spread out to 6-7 years. But it just works out better in this case because of the tax credit.
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galimpic said:
I am actually supposed to buy mine tomorrow. I wanted to get financing, as I always do, trading in my Tesla M3, but when me and the salesperson crunched the numbers for the lease, it made more sense, since it includes the $7,500 rebate. I've never leased before since I didn't see the point - you're locked into 2 or 3 years of paying the interest that is baked in without being able to put money towards the principal, you have to worry about the mileage and scratches, and have to carry the expensive 100/300/50 insurance, while your monthly payments are still higher than with financing, as those are spread out to 6-7 years. But it just works out better in this case because of the tax credit.
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I am right with you I have owned several Tesla’s, always bought them but I talked to my business manager and leasing with what was being offered made sense.

Let us know tomorrow what you ended up doing :)
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LA EQE said:
Let us know tomorrow what you ended up doing :)
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I came to the finance guy totally convinced that I should finance, but I left the office with the lease.... he convinced me it's better. Well, I own a Mercedes now, too. Anyone wants to buy a Tesla M3?
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galimpic said:
I came to the finance guy totally convinced that I should finance, but I left the office with the lease.... he convinced me it's better. Well, I own a Mercedes now, too. Anyone wants to buy a Tesla M3?
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Congrats 🎉 I just sold my Tesla MY. Post some pictures so we can see it.
Automotive parking light Tire Car Wheel Sky
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Old and new...
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galimpic said:
Old and new... View attachment 2271
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Is that Black? Those are my favorite wheels!
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LA EQE said:
Is that Black? Those are my favorite wheels!
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Yeah, black in & out. The wheels.... for some reason, all dealers in my area only have these.... yours seem to be 21'?
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They are 21” but I can’t really tell 20 from 21. I like the AMG sport look to yours.

Did you get the AWD?
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No, in this batch that came to dealerships around me there were mostly Premium trims and a few Exclusive, I snatched one of the exclusives before they got sold. No 4MATICs this time.... I would probably not get it anyway, I'm in FL, no snow.
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galimpic said:
No, in this batch that came to dealerships around me there were mostly Premium trims and a few Exclusive, I snatched one of the exclusives before they got sold. No 4MATICs this time.... I would probably not get it anyway, I'm in FL, no snow.
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I am in Los Angeles no snow well except for a little this year :ROFLMAO: and I wanted RWD for the miles. Here is the surprise, mileage is way better than advertised and you will beat the 279 too. I have a lead foot and I am getting 328 on a full charge. :)
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