Ford prepares to lose full tax credit on two of its three EVs

Ford is preparing to lose the full tax credit on the Mustang Mach-E and E-Transit electric vehicles, while the full amount will still be available for the F-150 Lightning as the new rules take effect on April 18.

The Mustang Mach-E and E-Transit are both losing half of the credit because the vehicles are not fully assembled or feature battery packs manufactured in North America.

The Mustang Mach-E and E-Transit do not meet these requirements, and customers who wish to receive the full $7,500 tax credit must take delivery before the April 18 deadline when the rules for the credits will change.

All three of the vehicles still qualify for the EV tax credits, which are included as a part of the Inflation Reduction Act, and three Ford hybrid vehicles will also qualify for the partial credit.

Ford’s Chief Customer Officer for the EV division, known as Model e, Marin Gjaja, said:

“Customers made Ford the No. 2 electric vehicle brand in the U.S. last year, and as we scale our production to build more EVs for more customers, we believe this new incentive eligibility will help even more Americans join the EV revolution.”

Ford said that its EVs will qualify for the following credits when the new rules take effect later this month:

  • Ford F-150 Lightning: $7,500 credit
  • Ford Mustang Mach-E: $3,750 credit
  • Ford E-Transit: $3,750 credit

To qualify for the incentives, the MSRP of the vehicle must be below $80,000, and the buyer must make below a certain amount based on their filing status. For Singles, it is $150,000, Head of Household is $225,000, and for those Married but filing Jointly, the limit is $300,000.

The only EV that does not qualify for the credits due to its MSRP is the F-150 Lightning’s Platinum trim, which exceeds the $80,000 limit. Despite price hikes applied to the F-150 Lightning lineup in late March, this is the only trim that will not qualify.

Ford has had a somewhat successful EV campaign thus far, although soft delivery figures for Q1 regressed the company to the third-best-selling EV maker in the U.S.

General Motors took the #2 spot following a stronger performance in the first quarter.

Ford also felt the wrath of a production and delivery stoppage on the F-150 Lightning, which halted lines for over a month. The Mustang Mach-E continued as Ford’s best-selling EV.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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