How to Get a Mercedes Tax Credit

January 27, 2012

A Mercedes tax credit may be available to you if you own and drive a certain model Mercedes vehicle. Particularly, GL, ML and R-class Mercedes models, 2009 and newer with BlueTEC diesel, may qualify for this tax credit. The credit falls under the United States Tax Credit for Qualified Hybrid Vehicles or the Alternative Motor Vehicle Credit. This tax credit has been available for some time on other hybrid cars and SUVs, and now these Mercedes models meet the criteria. In addition to the excellent fuel economy and increased torque, the addition of a potential tax credit may make your consideration of buying a Mercedes much more attractive.

1. Qualifications

There are a number of qualifications that your vehicle must meet to be eligible for the Mercedes tax credit. Firstly, you must own and not lease a particular year and model with BlueTEC diesel. If your vehicle is leased, the leasing company would be eligible for the tax credit. The maximum tax credits for each model are as follows: 2009 ML320 BlueTEC - $900, 2009 R320 BlueTEC - $1550 and 2009 GL320 BlueTEC - $1800. The 2009 E320 does not qualify for the credit. These credit amounts are based on a complex formula and this process begins to phase out on a tiered basis once the manufacturer sells 60,000 eligible vehicles. If you are subject to Alternative Minimum Tax credits on your vehicle, you will not be eligible for the Mercedes tax credit, and the vehicle must be purchased before the end of year 2010 to qualify.

2. How to Receive the Credit

The Mercedes Tax credit is not applied at the time of purchase, but rather claimed as part of the process of filing your income taxes with the IRS. It may be most sensible to simply inform your tax professionals of the possibility of qualification, so that they can gather all the appropriate paperwork and figure the calculations for you based upon any recent changes or updates. Form 8910 is used to apply for the Alternative Motor Vehicle Credit for a vehicle used for personal and not business reasons. Business use would include Form 3800 within the tax documents, and other calculations would need to be processed. As per the instructions on pages 2 and 3 of Form 8910, you can check for your exact model vehicle to enter the appropriate credit. There are also instructions for other figures and percentages which you would calculate depending upon which particular model you own and how you use the vehicle. In a nutshell, you will be asked for the year, make and model of the vehicle, the date the vehicle was placed in service and the allowable credit, found within the instructions. Once the deductions and other credits are applied, per the calculations required to arrive at the final figure, this form can be included and the figure entered on your regular 1040 IRS income tax form.


Privacy Policy|Do Not Sell My Personal Information|Terms of Use|Cookie Policy|Disclaimer
COPYRIGHT 1999-2020 MH Sub I, LLC dba