Try not to laugh too hard…
Under the old Treasury Department rules, buyers could snatch up a new Ford Mach-E with a $7,500 tax credit, but those days are coming to a close. Starting on April 17, the EV credit rules are shifting and the Mach-E, like most of Ford’s EV lineup, will only qualify for $3,750 in tax credits. That could be why so many people have been grabbing the crossover Ford claims is a Mustang in spirit, before the window of opportunity closes.
Find out how much Ford loses on each Mach-E sold here.
Once the rules shift, only two Ford EVs will still get the full $7,500 tax credit: the F-150 Lightning and Lincoln Aviator Grand Touring. That means not only will the Mach-E see cuts, so will the E-Transit, Escape Plug-In Hybrid, and Lincoln Corsair Grand Touring.
Everything about EV tax credits was changed as part of the Inflation Reduction Act, a bill many advocates call the most important piece of climate legislation ever put forward. It’s supposed to incentivize consumers and companies to invest more in so-called “climate friendly” technologies and solutions.
One of the aims of the IRA is to cut down Chinese influence in the “green” economy, namely for solar panels and EV batteries. What the Biden Administration hopes to accomplish is to shift global supply chains away from the Middle Kingdom, diverting more manufacturing jobs back to the US. However, that means making some changes consumers and different companies will find uncomfortable, or worse.
Ford isn’t being singled out here. While the rule shift affects all automakers, the Blue Oval was one of the first to officially announce how its lineup will be impacted. It’s speculated Tesla will especially take a hit from the changes, although that isn’t confirmed as of the writing of this article.
Source: Reuters
Images via Ford
