Ford has confirmed that the F-150 Lightning electric pickup truck and Lincoln Aviator Grand Touring plug-in hybrid SUV will be eligible for the full $7,500 federal tax credit moving forward. However, all of its other current EVs and plug-in hybrids will only be eligible for smaller amounts.
Following the release of updated guidance from the U.S. Treasury Department on new tax-credit rules, Ford is among the first automakers to verify and make public which vehicles meet the strict battery raw materials requirements. Starting April 18, tax credits for many EVs including some American-made ones will decrease.
2023 Lincoln Aviator
In a press release, Ford stated that both the F-150 Lightning and Aviator Grand Touring will still be eligible for a $7,500 credit after April 18 (plug-in hybrids can also qualify for the same credit as EVs if their battery packs meet specific requirements). Meanwhile, the Ford Mustang Mach-E and E-Transit EVs as well as the Ford Escape Plug-In Hybrid and Lincoln Corsair Grand Touring will qualify for a $3,750 federal tax credit after April 18.
For those who take delivery of a Ford EV before April 18, they will qualify for a $7,500 tax credit. If delivery is taken after that date, commercial customers can still get a credit of up to $7,500 for any of Ford’s EVs or plug-in hybrids. The tax credit will help offset some of the latest Lightning price hike, which raised the base price of the fleet-oriented Lightning Pro model to over $60,000, regardless of whether it’s individual consumers or commercial buyers.
Ford Mustang Mach-E assembly – Mexico
The complex global supply chain means not all Ford vehicles will receive the same credit as the Lightning. For example, the Mach-E sources its battery cells from Poland, although it qualifies for American assembly as it’s made in Mexico. This complexity has made it challenging to maximize the tax credit legislation and may hamper EV affordability. While some argue that limiting the size of EV batteries in the policy would help, it currently does not. Moreover, it does not help in the short-term given the surge in battery prices driven by raw materials.
The Ford F-150 Lightning electric pickup truck and Lincoln Aviator Grand Touring plug-in hybrid SUV will be eligible for the full $7,500 federal tax credit moving forward.
After April 18, 2023, the federal tax credit for EVs will decrease from $7,500 to $3,750.
Ford is among the first automakers to verify and make public which vehicles meet the strict battery raw materials requirements.