Back in May, FoMoCo CEO Jim Farley stated that he expected Ford EV tax credits of $7,500 to dry up by late 2022 or early 2023. At that point, Ford would join number of other automakers in that regard, including Tesla, General Motors, and now Toyota, which have already sold over 200,000 EVs – the cut off point for that particular tax credit. But based on new data from the Internal Revenue Service (IRS) and FoMoCo’s latest sales figures, it seems as if Ford tax credits may run out sooner than Farley previously predicted.
The key, it seems, is the fact that the tax credit applies to not only pure EVs, but also plug-in hybrids with a total battery capacity of at least 16 kWh, while the minimum requirement is at least a 4 kWh battery and the capability to recharge from an external source of electricity. The IRS notes that as of the end of 2021, Ford had sold roughly 160,000 vehicles that meet this criteria.
| Calendar Year | Model | U.S. Deliveries |
|---|---|---|
| 2020 | Mustang Mach-E | 3 |
| 2021 | Mustang Mach-E | 27,140 |
| 2022* | Mustang Mach-E | 17,675 |
| 2022* | E-Transit | 2,371 |
| 2022* | F-150 Lightning | 2,296 |
| Total | 49,485 |
- *January through June 2022
| Calendar Year | Model | U.S. Deliveries |
|---|---|---|
| 2022* | Mustang Mach-E | 17,675 |
| 2022* | E-Transit | 2,371 |
| 2022* | F-150 Lightning | 2,296 |
| Total | 22,342 |
- *January through June 2022
Ford does not break out PHEVs in its monthly sales report, but sold 49,485 BEVs in 2020 through the first half of 2022, with 22,342 of those sales occurring in January through June of 2022. That means the automaker has sold at least 182,342 electrified vehicles that qualify for the current federal tax credit, not including PHEVs sold in the first half of 2022, putting it precariously close to the 200,000 vehicle limit.
Meanwhile, Jim Farley has been quite vocal about his desire for change in terms of EV incentives over the past year or so, and most recently visited the White House in January to discuss that particular topic with lawmakers. Previously, President Joe Biden proposed increasing the current EV tax credit from $7,500 to as much as $12,500 for union-built electric vehicles, while also introducing a $4,000 credit for used EVs and making companies that have already surpassed the current 200,000 EVs sold cap for the existing tax credit.
We’ll have more on the state of EV incentives soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.
Comments
If Ford hits the 200K trigger this quarter, the full value of the credit is still available until December 31st, 2022. Which is exactly what Jim Farley said was going to happen. This is hardly unexpected.
And to be clear here, GM and Tesla vehicles don’t qualify for any level of tax credit. Toyota’s credit gets cut in half on October 1st, and Ford’s will be cut in half on January 1st, 2023, assuming that they hit 200K this quarter. There’s a chance it may slip to Q4, in which case the full value of the credit is still available in Q1 of 2023. Which is inline with what Jim Farley said.
Americans simply don’t care about EVs. There is a large grassroots boycott against them due to their limited functionality and how expensive they are to repair. Ford’s Board of Directors will learn the hard way when their bank accounts shrink. They need a new CEO.
How much more expensive was the car verses the horse and buggy at the time?
Five incorrect statements in one comment. You win!
Plug in Lincoln Aviators count towards Fords credits too and aren’t reported above. The full tax credit is available through the quarter Ford hits 200k. If that is Q3, then purchases in Q3 are the last ones that will get the full credit. Q4 2022 and Q1 2023 sales are eligible for half the credit.
Not quite right, read the actual IRS rules….the full credit is available during the quarter Ford hits 200k, Plus the Next full quarter. If they hit 200k this quarter, the full credit will be available though the end of 2022.
Why is Ford Authority promoting sponsored articles that are four and five years old? (see above section). And doing so in an EV section of the site in which anything more than 12 months out is already very old news? Do better FA.
Im not anti EV’s but this is a participation trophy truck. its fine for local driving or light duty hauling but its a joke for serious truck work. as more real world independent tests come out this truck show how comically bad it is at heavy hauling.