BERLIN – German automaker Mercedes-Benz has applied for tax breaks for potential projects at two of its U.S. plants under the Inflation Reduction Act, a company spokesperson said on Monday.

We have decided to participate in the application process for production-related tax relief under the IRA for the plants in Alabama and South Carolina, according to the spokesperson.

German daily Handelsblatt, citing several sources, reported that Mercedes is looking to expand its Alabama plant to produce the all-electric GLC from 2026 and wants to build fully electric delivery vans and medium-sized luxury transporters on the new VAN.EA electric platform at its plant in South Carolina.

A final decision is expected later this year or early next year, Handelsblatt reported. Mercedes did not want to comment on the production plan for the electric GLS.

The IRA is the U.S. government’s key incentive and investment program to transition the economy to climate-friendly production, including by encouraging carmakers to manufacture electric vehicles in the United States.

Mercedes-Benz Applies for Tax Breaks in the United States for Potential Expansion Projects


In a move to support its potential expansion projects, German automaker Mercedes-Benz has recently applied for tax breaks under the Inflation Reduction Act (IRA) for two of its U.S. plants. These projects include the production of the all-electric GLC at the Alabama plant starting from 2026, as well as the development of fully electric delivery vans and medium-sized luxury transporters on the new VAN.EA electric platform at the South Carolina plant.


A decision regarding the tax breaks is expected to be made later this year or early next year, according to reports from German daily Handelsblatt. While Mercedes-Benz did not provide any specific comments about the electric GLS production plans, the company’s participation in the application process demonstrates its commitment to expand its electric vehicle manufacturing capabilities in the United States.

The Inflation Reduction Act (IRA) serves as a vital incentive and investment program by the U.S. government to facilitate the transition to climate-friendly production. By encouraging car manufacturers to produce electric vehicles domestically, the IRA plays a significant role in driving sustainable economic growth.

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