Ford CEO Jim Farley – along with a number of his peers – has long called for an overhaul of the current $7,500 federal tax credit, which placed a cap on 200,000 vehicles and is limited in terms of who, exactly, can benefit from it. While many states have imposed their own EV tax credits, the U.S. Senate recently created a new bill that reforms the existing federal credit and keeps Ford EVs and those from other automakers at or over the current cap eligible for tax credits through the end of 2032, as part of the Inflation Reduction Act of 2022. Now, Ford EVs and plug-in hybrids will be eligible for a new clean energy credit that just took effect as well.
| Fully Electric | Plug-In Hybrid |
|---|---|
| Ford E-Transit | Ford Escape PHEV |
| Ford F-150 Lightning | Lincoln Corsair Grand Touring |
| Ford Mustang Mach-E | Lincoln Aviator Grand Touring |
Officially known as the Clean Vehicle Credit, this new incentive amends the existing Qualified Plug-in Electric Drive Motor Vehicle Credit to add a requirement that qualifying vehicles must go through the final assembly process in the U.S. to be eligible. Additional stipulations will be added next year, but for now, a number of Ford EVs and PHEVs qualify for the credit, including the Ford E-Transit, Ford F-150 Lightning, Ford Mustang Mach-E, Ford Escape PHEV, Lincoln Corsair Grand Touring, and Lincoln Aviator Grand Touring.
Those that take delivery of one of these vehicles on or after August 16th, 2022 qualify for the credit, though eligibility requirements will reportedly change quite a bit on January 1st, 2023. More information on those changes is coming over the course of the next several weeks and months.
This news means that Ford – which was on track to exceed the previous cap of selling 200,000 eligible models by the end of 2022 or in early 2023 – will remain eligible for these tax credits for the foreseeable future. However, it is worth noting that non-price protected F-150 Lighting customers will be facing price increases of between $6,000-$8,500 for the 2023 model year, which essentially negates this benefit.
We’ll have more on this new tax credit soon, so be sure and subscribe to Ford Authority for comprehensive Ford news coverage.
Comments
Ford needs to do the right thing and price protect those who have had reservations within 2 hours of reservations opening on 5-19-21. At least for those who reserved within the first 24 hours. It is not the consumer’s fault that Ford prioritized the dealers in BEV states and some dealers didn’t get any allocation for 2022. Now the consumer who wanted to invest in EVs isn’t just paying a $8600 price hike, they are paying a $16,100 price hike for an ER variant since all ER trims are outside of the $80,000 limit set forth by the Inflation Act. This is shameful and bad business practice so I hope Ford, like Rivian, steps up and price protects those loyal Ford customers who reserved at least within the first 24 hours. What’s the point of going “green” if no one can afford to do so because automakers price all their vehicles out of all incentives??
So is this saying that if you take delivery of a new ev/phev between now and end of the year it will qualify for the new rules where you get $7500 off at the point of sale? Or does that rule kick in Jan 1 2023?
No. If you purchase and take delivery of a new EV between now and Dec 31, 2022 the you get the $7500 tax credit as long as the manufacturer hasn’t hit their 200,000 cap limit which will go away on Jan 1, 2023. On that date then the new rules for the qualifications for the EV tax credit goes into effect. The Point of sale rebate does not take effect until 2024. But by then it is estimated that almost EV vehicles will not qualify for the tax credit because of the strict battery requirements that go into effect in 2024.
Dang, I was hoping to get a 2023 Escape PHEV early in 23 and have the $7500 come off the sales price.
Under the old rules the Escape PHEV credit was $6800, is it the same amount under the new rules?
All of our friends said they don’t care about credits and it will not persuade them to buy an EV. You still have to buy the electricity, wait at least 20 minutes for a charge, and repair costs on EVs are much higher. No thanks.
Repair costs are higher on an EV? LOL. This is blatantly false. Thousands of fewer components on EVs and heavy software means updates can be done over the air as needed. You’re right though… you do have to buy electricity… at a fraction of the cost of gas.
The blind leading the blind. Electricity is a fraction of the cost of gas/diesel. Repair costs on what? Brake pads will probably last the life of the EV.
If you believe your friends, I would suggest looking at how much an oil change costs on an EV vs. an internal combustion engine.
PS – You may want to start looking for new “friends”, or you may want to start actually researching for yourself.
For those following this story, which is incredibly important to most of us, there are a few links to get more info: https://www.fueleconomy.gov/feg/taxevb.shtml, https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d, https://afdc.energy.gov/laws/inflation-reduction-act . All are worth a quick read. Hope this helps! The rules will be “tricky” 🙂
Why should it be limited to plug in hybrid and not just a hybrid like the Maverick truck.
I was thinking of getting a Bolt but charging anxiety is pushing me towards a PHEV. the Ford Escape qualifies for the rebate as far as I can tell. But comments about interior quality bother me. I would install the charger in my garage so charging is not an issue around town. We have a Vendza now which is nicely appointed but We have to pump gas here in De.Any suggestions? Bill