Several Electrified Ford Models Lose Tax Credit Eligibility

Back in April, a list of 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 as soon as the beginning of 2024, and that list was previously expected to include three electrified Ford vehicles, and that’s precisely what happened today, according to Reuters.

Following the implementation of new battery sourcing rules that took effect today, January 1^st, 2023, the Ford E-Transit, Ford Mustang Mach-E, and Lincoln Aviator Grand Touring are no longer eligible for the federal clean vehicle tax credit. Of course, FoMoCo isn’t alone in that regard, as its cross-town rival General Motors has seen the Cadillac Lyriq and Chevy Blazer EV lose their tax credits, along with the Tesla Cybertruck, Volkswagen ID.4, Tesla Model 3 Rear Wheel Drive, BMW X5 xDrive50e, Audi Q5 PHEV 55, and Nissan Leaf, meaning that just 19 vehicles now qualify for the credit compared to the original list of 43 models.

Previously, all of Ford’s EVs and PHEVs qualified for at least part of the new IRA tax credit, though amounts vary by model, and each must have an MSRP of less than $80,000. The Ford F-150 Lightning is still eligible for the full $7,500 incentive and that will still be the case moving forward, though the Ford Mustang Mach-E and E-Transit were only eligible for half of that sum at $3,750.

As for FoMoCo’s plug-in hybrids, the Ford Escape PHEV and Lincoln Corsair Grand Touring get half of the tax credit and will continue to be eligible moving forward. Commercial buyers are eligible for commercial tax incentives of as much as $7,500 on all these vehicles, too. According to the U.S. Treasury, “automakers are adjusting their supply chains to ensure buyers continue to be eligible for the new clean vehicle credit, partnering with allies and bringing jobs and investment back to the United States.”

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