Mercedes-Benz Eyes Tax Breaks for EV Plants in Alabama, South Carolina

In a strategic move to further their green initiative, Mercedes-Benz, the esteemed German automaker, is exploring tax relief for its upcoming projects in the United States.

On Monday, a company spokesperson revealed, “We have decided to participate in the application process for production-related tax relief” under the Inflation Reduction Act (IRA).

Specifically, these tax breaks would be for their plants located in Alabama and South Carolina.

But what’s the catch? According to the German daily Handelsblatt, insider sources suggest Mercedes aims to amp up its Alabama plant to roll out the all-electric GLC by 2026.

Meanwhile, the South Carolina plant may soon be crafting fully electric delivery vans and luxury transporters on the brand-new VAN.EA electric platform.

The big question on everyone’s mind is, “Will it happen?” While a conclusive decision is anticipated later this year or at the start of the next, Mercedes remains tight-lipped about their exact production plans for the electric GLS.

With the IRA acting as the U.S. government’s golden ticket to a greener economy, Mercedes is undoubtedly setting its sights high, vying to be at the forefront of America’s electric vehicle revolution.

Photo credit: MotorAuthority / Baldauf.