mobile-menu-icon
Ford Authority

Ford Escape PHEV Remains Eligible For Tax Credit Into 2023

Since its reveal earlier this year, the Inflation Reduction Act of 2022 has been surrounded with confusion, mostly in regards to the country of origin requirements pertaining to the materials used in various vehicles, as well as which models are eligible for the revised electrified vehicle tax credit included in the bill. The U.S. Treasury and IRS have been working to clarify the latter for some time now, but in the meantime, the new clean vehicle credit payouts will continue to be determined based on a vehicle’s battery capacity, while proposed guidance on the critical mineral and battery component requirements is expected to arrive in March 2023. This means that for now, at least, the recently refreshed Ford Escape PHEV remains eligible for this particular tax credit.

Ford Escape PHEV crossovers purchased after January 1st, 2023 are eligible for a tax credit of $6,843, giving interested buyers the chance to qualify prior to forthcoming revisions to the IRA. For the Escape PHEV, there is an MSRP limit of $80,000 – which shouldn’t be an issue, even for the highest-spec version of the crossover. That same limit is applicable to qualifying vans, sport utility vehicles, and pickup trucks, while all others feature a cap of $55,000.

Ford – in addition to automotive lobby groups and others – have been seeking clarity on these new IRA tax credits for months now, mostly to figure out how automakers can meet eligibility constraints. This figures to be a big competitive advantage moving forward, as consumers could get big tax credits – or none at all – depending on which vehicles they purchase. As such, Ford Pro recently launched an information site for the company’s commercial customers to receive clarification on this matter.

Regardless, Ford CEO Jim Farley has touted the new IRA tax credits as hugely beneficial to the automaker, its suppliers, and customers alike – particularly commercial entities looking to electrify their fleets.

We’ll have more on these proposed 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.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.

Comments

  1. Mark B

    I think the laregest road block to purchasing an EV for most folks, is the lack of a dependable and easy to use charging infrastructure. Until folks feel more comfortable about not having to concern themselves with where, and if any charging stations will be open when needed is resolved, this will continue to be a drag on sales.

    Reply
    1. RWFA

      Have you ever seen a map of all the chargers out there?

      There’s already decent coverage and that will increase as all chargers and cars move to a standard connector and any vehicle can use any charger.

      What’s easier than charging an electric car? You plug in, you authorize payment, go shopping or eat a meal, take a little nap or read FA.

      Reply
      1. CAHaze

        I take it you’ve never driven the back roads of Texas or New Mexico. I’ve gone hours without seeing a charging station, let alone a gas station. It’s not range anxiety that’s the concern, it’s when you go off the normal route. Worst case I can have AAA run me a gas can if I ever get stuck out there. How did they recharge cars that are 50 miles from the highway or 2 hours into a fire road?

        Reply
        1. RWFA

          Actually have and am appreciative of that use case.

          But this is far from the norm (i.e. where the majority of the vehicles are sold.)

          There will continue to be vehicles that address that environment and use case you describe for a long while yet but for most everybody else, it’s possible to move to BEV.

          For an OEM, it’s all about addressable market segments and where you want to play and at what cost.

          Reply
      2. CAHaze

        I take it you’ve never driven the back roads of Texas or New Mexico. I’ve gone hours without seeing a charging station, let alone a gas station. It’s not range anxiety that’s the concern, it’s when you go off the normal route. Worst case I can have AAA run me a gas can if I ever get stuck out there or flag down another car to get some gas. How did they recharge electric cars that are 50 miles from the highway or 2 hours into a fire road?

        Reply
    2. Becky

      That is why PHEV makes sense. Around town I can use my own electricity but for long trips I have a feel efficient Hybrid. Why is this not the best of both worlds. Th only problem is I have been waiting 11 months to get one with no end in sight.

      Reply
  2. RWFA

    The Big Oil guys like to push range anxiety, and all the other anxieties, before suggesting that a PHEV is a good purchase.

    They like PHEV because it locks in some outlet for their product m, for the lifecycle of that unit, as compared to BEV.

    Reply
  3. CAHaze

    Are these tax credits a reduction in taxable income, an addition to a refund, or a reduction in taxes owed? I find this information hard to find…do I need to owe taxes when filing to be eligible?

    Reply
    1. RWFA

      Here’s a tiny blurb from fords website.

      www. ford. com/support/how-tos/owner-resources/sales-support/how-can-i-save-with-ev-government-incentives/
      (Take out spaces before ford and com.)

      Ford Authority had an article 3 weeks ago about ford publishing info on that.

      In google I saw Ford pro had a hit and gm authority had a hit about Treasury department coming with tax guidance in March.

      Hope this helps.

      Edit: free press had an article about credits and also a link to treasury site. I recommend both:

      https://home. treasury. gov/news/press-releases/jy1179

      Reply
  4. Shayla

    Hoping this new Congress stops giving away our hard earned money for EVs that can’t survive on their own profits. So glad a couple manufacturers announced recently that their focus won’t be on EVs. What wasteful money pit.

    Reply
    1. Rick

      Yep just another liberal boondoggle. Hopefully this climate hysteria won’t totally wreck the country before people come to their senses.

      Reply
      1. Sam

        History concretely shows we will get hit by a space rock before anything else happens. It will be another hard reset for civilization just like all the previous ice ages.

        Reply
  5. Ben

    Can not understand why lincoln corsair is classified as wagon (subject to $55,000 cap) while ford escape is calssified as SUV (subject to $80,000), just does not make sense. This will probably make lincoln corsair GT off the credit for most cases.

    Reply

Leave a comment

Cancel