FoMoCo PHEV, EV Models Get $80K MSRP Limit For EV Tax Credit

Ever since a new EV tax credit was announced as part of the Inflation Reduction Act of 2022 months ago, there has been quite a bit of confusion over what models are eligible for the credit, as well as some questions over MSRP limits placed on certain vehicles. The Ford Escape PHEV – for example, is eligible for the credit, though it initially featured an $80k MSRP limit – far more expensive than any Escape model – while its counterpart, the Lincoln Corsair Grand Touring – as well as the Ford Mustang Mach-E – featured caps of $55k. The U.S. Department of Treasury later revised the Escape PHEV limit to $55k, but now, the agency has made some changes to the new EV tax credit once again.

In essence, the Treasury is is updating its vehicle classification standard to use the EPA Fuel Economy Labeling standard rather than the EPA CAFE standard. This change will allow crossover vehicles that share similar features to be treated consistently, and will also align vehicle classifications under the clean vehicle credit with the classification displayed on the vehicle label and on FuelEconomy.gov.

Essentially, this means that all FoMoCo models eligible for the new EV tax credit – the Escape PHEV, Mustang Mach-E, E-Transit, Ford F-150 Lightning, Lincoln Aviator Grand Touring, and Corsair Grand Touring – now feature an $80,000 MSRP limit, which is true of all vans, sport utility vehicles and pickup trucks, while other types of vehicles have a cap of $55,000.

Meanwhile customers that have already purchased vehicles that qualify under the EPA Fuel Economy Labeling classification standard as of January 1^st, 2023 are also eligible to claim the credit, including those with vehicles that did not qualify under the prior EPA CAFE standard.

We’ll have more on the new clean vehicle tax credit soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.