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Ford Officially Calls On Congress To Eliminate EV Tax Credit Cap

With the automaker’s EV sales growing rapidly, Ford CEO Jim Farley believes that mass adoption of all-electric vehicles will begin as soon as next year, but some obstacles remain. One of the biggest is cost, though the current federal EV tax credit of $7,500 (along with various state incentives) helps in that regard, even if lessees of the Ford Mustang Mach-E and Ford F-150 Lightning aren’t eligible for it unless they opt for the Ford Options Plan. However, while countries like China and the U.S. explore the idea of rolling out new tax credits – something that Farley has long campaigned for and remains in favor of – Ford’s share of the current EV tax credit looks set to run out in early 2023, which has the automaker officially calling on Congress to eliminate the current cap of 200,000 vehicles sold, according to Reuters.

Ford wasn’t alone in that regard, as it joined forces with rivals including General Motors, Stellantis, and Toyota in writing a letter to Congress asking it to lift the EV tax credit cap and pointing out that collectively, that group is investing $170 billion in EVs through 2030. Currently, both GM and Tesla have already surpassed the 200,000 vehicle cap, meaning that EVs from those manufacturers are no longer eligible for the tax credit.

“We ask that the per-(automaker) cap be removed, with a sunset date set for a time when the EV market is more mature,” the automakers said in the letter. “Recent economic pressures and supply chain constraints are increasing the cost of manufacturing electrified vehicles which, in turn, puts pressure on the price to consumers.”

2022 Ford F-150 Lightning

The move – which has its fair share of critics who don’t believe that any EV tax credits are needed, given current demand, is a bit different than what President Joe Biden previously proposed – EV tax credits of up to $12,500, but $4,500 of which would only be awarded to those that purchased a union-built EV. However, this latest proposal made no mention of the union requirement.

We’ll have more on the future of EV incentives soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Joe

    People who can’t affordto buy one of these EVs, should not be giving their tax dollars to the well off that can buy one. They should sell on their own merit.

    Reply
    1. Greggt

      You are so right!! I don’t want my tax dollars supplementing the “Green New Deal”!

      Reply
  2. David Dickinson

    Uggh! So, the auto manufactures have a failing product that they want to sell but people don’t want or can’t afford it, so they ask the government to force all of us to pay for it. Great.

    “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it” — Ronald Reagan

    Reply
  3. Mike

    These OEMs are making record profits, giving their executives insane amounts of compensation, and they have the gall to ask the government for basically handouts, to help sell their overpriced EVs?

    Reply
  4. Tigger

    Good luck with that. Build Back Better is dead.

    Reply
  5. The Gentle Grizzly

    No credits at ALL. Let the EVs stand or fall on their merits.

    I feel the same way about hybrids getting carpool lane exemptions. Who here thinks the first few years of Prius sales in California would have been so high without the availability of those stickers?

    Reply
    1. Ford Owner

      Chevy Volt owners got them, too. They helped reduce emissions and smog levels dropped. I was in L.A. in October 1989 and I saw how clean the city air was on a Monday morning. By Wednesday evening, I did see how heavy the smog was. Now in 2022 it is clear every day.

      Reply

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