Considering upgrading to an electric or plug-in hybrid electric vehicle (PHEV) from Mercedes-Benz of Annapolis? You’ll get the peace of mind of helping our planet and reducing your carbon footprint. You’ll also benefit from Mercedes-Benz incentives at tax time.

What is the Federal Tax Income Credit?

If you’ve purchased a new Mercedes-Benz EV or PHEV after 2010, you may be eligible for a federal income tax credit. In some cases, this credit is up to $7,500. Your credit amount is based on the capacity of the battery used to power your vehicle.

How Do You Claim the Tax Credit?

To claim the credit, you’ll need to fill out the Qualified Plug-in Electric Drive Motor Vehicle Credit form, also known as Form 8936. Then, you’ll need to report the credit on your income tax return.

Keep in mind, this applies to individual tax returns. If your vehicle is used for business purposes, a different form is required.

Are There Additional Incentives?

On top of the federal tax income credit, there are also a plethora of additional incentives for Maryland drivers that you may be eligible for.

• Maryland excise tax credit of up to $3,000
• Rebate of up to 40% of the cost of EV charging equipment and installation (up to $700 for individuals, $4,000 for businesses, and $5,000 for retail service stations)
• Federal EVSE credit of up to 30% or $1,000 for charging station equipment
• PHEV drivers qualify to access the High Occupancy Vehicle (HOV) lanes, no matter how many passengers they’re carrying. (You’ll need to get a permit to display in your car.)
• The option for time-of-use charging rates for customers that own PHEVs and a reduced electricity rate during off-peak hours

Ready to make the electric switch? Visit our Mercedes-Benz dealership in Annapolis, MD to get started today!