Mercedes-Benz applies for inflation tax break on Alabama plant expansion

Mercedes-Benz applies for inflation tax break on Alabama plant expansion

Mercedes-Benz has applied for tax breaks for potential projects at two U.S. plants, including its Tuscaloosa County facility.

Reuters, citing Germany’s Handelsblatt, is reporting that Mercedes seeks to expand its Vance plant to produce the all-electric GLC SUV, beginning in 2026.

To make this happen, the company is applying for tax breaks under the Inflation Reduction Act (IRA), according to a company spokesperson, who did not comment on the production plan.

The company also seeks to build electric delivery vans and medium-sized electric luxury transporters at its South Carolina plant.

Approved last year, the IRA has provisions to speed domestic energy production, including green energy projects.

In 2022 Mercedes began electric vehicle production in Vance, capping five years of activity and more than $1 billion in investments, which also added an electric battery factory in Bibb County and 1,000 more employees.