What’s Happening: Ford Motor Company announced that its electric vehicles and plug-in hybrids are eligible for federal tax credits under the Inflation Reduction Act in 2023. The announcement comes after the U.S. Treasury Department issued additional guidance on the matter. Ford’s eligible vehicles include the Ford F-150 Lightning, Ford Mustang Mach-E, Ford E-Transit, Ford Escape Plug-In Hybrid, Lincoln Corsair Grand Touring, and Lincoln Aviator Grand Touring.
Why It Matters: As the No. 2 electric vehicle brand in the U.S., Ford’s participation in the tax credit program could help more Americans transition to electric vehicles. According to Marin Gjaja, Chief Customer Officer of Model e, the new incentive eligibility will help expand the electric vehicle market and encourage more customers to join the EV revolution.
Key Points:
- Ford F-150 Lightning: $7,500 tax credit
- Ford Mustang Mach-E: $3,750 tax credit
- Ford E-Transit: $3,750 tax credit
- Ford Escape Plug-In Hybrid: $3,750 tax credit
- Lincoln Corsair Grand Touring: $3,750 tax credit
- Lincoln Aviator Grand Touring: $7,500 tax credit
For customers who take delivery of a Ford EV before April 18, the eligibility amount is $7,500. To qualify for the incentives, the vehicle’s MSRP must be at or below $80,000, and the purchaser must meet certain income limits. All eligible vehicles are assembled in North America, another requirement for the consumer tax incentive.
Commercial customers can also benefit from commercial tax incentives of up to $7,500 on all these vehicles.
Bottom Line: Ford’s confirmation of tax credit eligibility for its electric vehicles and plug-in hybrids will likely boost sales and encourage more customers to adopt environmentally friendly transportation options. Since 2019, Ford and its battery tech partners have announced 18,000 new direct EV-related jobs in the United States, supporting over 100,000 indirect jobs. As Ford’s vehicle lineup evolves and eligibility requirements change, the company plans to update customers with the latest information.
