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.