Back in April 2023, a list of new electrified vehicles eligible for new tax credits under the Inflation Reduction Act (IRA) was revealed following much confusion pertaining to what, exactly, would qualify. At that time, a handful of Blue Oval models were eligible for at least a partial credit of $3,750, while a couple of others got the full $7,500. However, the bill’s increasing critical mineral and battery component sourcing requirements made it pretty clear from the start that many vehicles were set to lose their eligibility at the beginning of the year – which is ultimately what happened. Now, the EPA has released a list of used Ford and Lincoln vehicles that are eligible for a tax credit, too.
On the Ford side of that coin, shoppers have several electrified models to choose from. That includes the plug-in hybrid 2013-2017 C-Max Energi, 2020-2022 Ford Escape PHEV, and 2013-2020 Fusion Energi, along with the all-electric 2022 E-Transit, 2022 Ford F-150 Lightning, 2012-2018 Focus Electric, and 2021-2022 Ford Mustang Mach-E.
As for Lincoln, shoppers have just two used models to choose from, both of which are plug-in hybrids – the 2020-2022 Lincoln Aviator Grand Touring and the 2021-2022 Lincoln Corsair Grand Touring. There are several caveats to this tax credit, as one would imagine, however. For starters, vehicles must have been purchased after January 1st, 2023, must be purchased from a dealer, have a sales price of $25,000 or less, and come from a model year at least two years prior to the current calendar year. Otherwise, the credit is equal to 30 percent of the sales price, up to a maximum of $4,000, though it is nonrefundable – meaning that one can’t get more back than they own in taxes, and they can’t apply any excess credit to future tax years, either.
Additionally, shoppers must be an individual who bought the vehicle for personal use and not for resale, cannot be the original owner, can’t be claimed as a dependent on another person’s tax return, and can’t have previously claimed another used clean vehicle credit in the three years before the purchase date. Those that qualify for the credit can’t have a modified adjusted gross income of more than $150,000 for married couples filing jointly or surviving spouses, $112,500 for heads of households, and $75,000 for everyone else, either.