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American-made Mercedes-Benz EQE electric SUV priced to qualify for tax credits

The Mercedes-Benz EQE electric SUV will have a starting price under $80,000, which allows it to qualify for the federal electric car tax credit.

Pricing for the upcoming Mercedes-Benz EQE have been released, and the Tuscaloosa, Alabama-built, luxury SUV should qualify for some federal green car tax credits.

The midsize Tesla Model Y competitor will have a starting price of $79,050, including destination fees, which gets it under the $80,000 price cap for trucks and SUVs.

Mercedes-Benz has taken the unusual step of pricing the two-wheel-drive EQE 350+ SUV and all-wheel-drive EQE 350 4MATIC SUV identically.

The two models are each rated at 288 hp, but the all-wheel-drive version has 564 lb-ft of torque compared to the two-wheel-drive's 417 lb-ft.


The all-wheel-drive model accelerates to 60 mph in 6.2 seconds, which is just a tick quicker than the two-wheel-drive's 6.3-second sprint. The bigger difference will likely be how far they can drive between charges of their 90.6 kilowatt-hour battery packs, which hasn't been announced yet.

That pack will be built not far from the factory in Bibb County, which helps meet the rules for getting the tax credits that were laid out the Inflation Reduction Act, which require that packs be assembled in North America for part of the full $7,500 credit.


Further details on critical mineral supplies, which must be sourced from North America or free trade partners to qualify for more of the credit, have not been announced as the Treasury Department is still working out the final certifications.

Higher priced versions of the EQE will also be offered that are above the limit, including the $89,500 EQE 500 4matic SUV, which has a 536 hp all-wheel-drive system.

More details, including the range, will be released closer to when the EQE SUV goes on sale this spring.

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