Ford Mustang Mach-E probably won't qualify for EV tax credits in January

2022 ford mach e ice white 0011

Ford Motor said on Wednesday it is unlikely Mustang Mach-E electric vehicles currently in dealer showrooms will qualify for federal tax credits beginning in January.

The U.S. Treasury issued guidance last week detailing new battery sourcing restrictions that take effect Jan. 1 aimed at weaning the U.S. EV supply chain away from China. The current model Mach-E currently qualifies for a $3,750 federal tax credit.

Ford said it was still reviewing if its F-150 Lighting EV truck will qualify after Jan 1 for tax credits. The company declined to detail why it expects the Mach-E to lose the credit.

The No. 2 U.S. automaker has sold 35,908 Mach-E EVs in the U.S. in the first 11 months of the year, up 3.5% over the same period last year. In October, Ford said it was cutting some Mach-E production.

Ford also said in October it was postponing about $12 billion in EV investments, including delaying its second battery plant in Kentucky.

Ford also said in October it was temporarily cutting one of three shifts at the Michigan plant that builds its F-150 lightning, citing multiple constraints, including supply chain issues.

Ford told dealers according to a bulletin seen by Reuters about the tax credit and said the expiration is “an excellent motivator to purchase before the end of the year. This is a great time to reach out to customers in your pipeline to close the sale and ensure they are able to receive the credit.”

Ford also told dealers that incentives for 2023 model Mach-E and F-150 Lightning sales and leases would be extended.

General Motors said Friday that it expects many of its electric vehicles to qualify for U.S. tax credits next year after new stricter rules limiting Chinese battery content take effect on Jan. 1.

Volkswagen said Wednesday it is “cautiously optimistic that the Chattanooga-assembled 2024 model year ID.4 will qualify for the full $7,500 Tax Credit” next year.

In December 2021, Ford had said it expected to triple the output of its all-electric Mustang Mach-E to over 200,000 units per year by 2023 for North America and Europe. 

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