BERLIN – German automaker Mercedes-Benz has utilized for tax breaks for potential tasks at two of its U.S. crops beneath the Inflation Discount Act, an organization spokesperson mentioned on Monday.

“We now have determined to take part within the utility course of for production-related tax aid” beneath the IRA for the crops in Alabama and South Carolina, based on the spokesperson.

German each day Handelsblatt, citing a number of sources, reported that Mercedes is seeking to develop its Alabama plant to supply the all-electric GLC from 2026 and desires to construct totally electrical supply vans and medium-sized luxurious transporters on the brand new VAN.EA electrical platform at its plant in South Carolina.

A ultimate determination is anticipated later this yr or early subsequent yr, Handelsblatt reported. Mercedes didn’t need to touch upon the manufacturing plan for the electrical GLS.

The IRA is the U.S. authorities’s key incentive and funding program to transition the financial system to climate-friendly manufacturing, together with by encouraging carmakers to fabricate electrical autos in the USA.