Does Mercedes-Benz Qualify for an EV Tax Credit?

While Iowa doesn’t currently provide any state incentives for electric vehicles (EVs), the federal government offers income tax credits to encourage more eco-friendly cars on West Des Moines roads. New EV purchases are eligible for a federal tax credit of up to $7,500, while used EV purchases are eligible for up to $4,000.

Does Mercedes-Benz qualify for an EV credit? Unfortunately, new Mercedes-Benz EVs don’t qualify for the $7,500 tax credit. However, you may still be entitled to up to $4,000 when you buy a qualifying pre-owned Mercedes-Benz EV. Learn more below with the team at Mercedes-Benz of Des Moines.

What Mercedes-Benz Models Get an EV Tax Credit?

Des Moines and Waukee drivers who purchase a pre-owned electric, plug-in hybrid, or fuel cell vehicle on or after January 1, 2023, may qualify for a federal tax credit. This credit is worth 30% of the vehicle’s value, or a maximum of $4,000. 

So, what Mercedes-Benz models get an EV tax credit? There are several other IRS requirements the vehicle must meet to qualify for this credit, including but not limited to:

• Purchased from a dealership
• Has a sale price of $25,000 or less
• Has a model year at least two years before the current calendar year
• Has a gross vehicle weight rating of less than 14,000 pounds
• Has a battery capacity of at least 7 kilowatt hours

So, if you’re considering buying a pre-owned Mercedes-Benz EQS, EQB, or plug-in hybrid model, you may be eligible for the federal tax credit. However, you must also meet several requirements as the buyer. For example, your gross income must not exceed $150,000 for married couples filing jointly, $112,500 for the head of household, and $75,000 for all other filers. 

Explore Our Pre-Owned EV Inventory in Urbandale

Now that you know Mercedes-Benz qualifies for an EV tax credit, explore our pre-owned inventory. If you’re interested in one of our pre-owned Mercedes-Benz electric vehicles or plug-in hybrids, please contact us online or at (888) 553-3961 to discuss its eligibility for a federal tax credit. Our knowledgeable finance team will provide you with all the information you need.

Please note that state and federal incentive programs evolve over time. For the most current and accurate information, we recommend checking the IRS website or consulting with a tax professional.