Ford EVs no longer eligible for IRS tax credit as of January 1, 2025

[Maineiac12]

Saw this on Facebook just now…

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[jamelski]

Sucks for 2025 people

 

[Maineiac12]

Sucks for 2025 people

The way the IRS rule reads is that all vehicles placed into service after 12/31/24 aren’t eligible so it looks like any unsold 2023 & 2024 vehicles wouldn’t get the credit if purchased in 2025.

If you want one, buy now!

 

[RickLightning]

The way the IRS rule reads is that all vehicles placed into service after 12/31/24 aren’t eligible so it looks like any unsold 2023 & 2024 vehicles wouldn’t get the credit if purchased in 2025.

If you want one, buy now!

Correct. It is NOT a model-year determination. The battery pack is the same, and that is what matters. Ford EXPECTED to source battery packs differently for 2025, but I haven't seen anything indicating that will happen.

 

[Heliian]

Some key information lacking here.

The tax credit has 2 parts, the threshold for one part is changing in 2025 but not the other part. If that was the case then half of the credit would still apply.

With the main header of this communication missing its impossible to tell if it's real or not.

 

[Pioneer74]

Some key information lacking here.

The tax credit has 2 parts, the threshold for one part is changing in 2025 but not the other part. If that was the case then half of the credit would still apply.

With the main header of this communication missing its impossible to tell if it's real or not.

It's real.

 

[Maineiac12]

Some key information lacking here.

The tax credit has 2 parts, the threshold for one part is changing in 2025 but not the other part. If that was the case then half of the credit would still apply.

With the main header of this communication missing its impossible to tell if it's real or not.

I’m guessing whoever posted it didn’t want it linked back to them or their dealership. I tried to confirm on the IRS site but their eligibility info only goes through 12/31/2024. I’m sure it’s possible that the IRS gave manufacturers a heads up on changes though.

 

[Pioneer74]

Nm

 

[Charge_Rob]

Some key information lacking here.

The tax credit has 2 parts, the threshold for one part is changing in 2025 but not the other part. If that was the case then half of the credit would still apply.

With the main header of this communication missing its impossible to tell if it's real or not.

The tax credit has 2 parts, Critical Minerals and Battery Components, each worth $3,750 for a total of $7,500. The law is designed to encourage more and more domestic manufacturing, along with 2 different cutoffs for using some foreign battery components:

• Battery Components - the battery must include a minimum of __% North American concent to qualify for $3,750:
  • before January 1, 2024: 50%
  • Calendar Year 2024 and 2025: 60%
  • Calendar Year 2026: 70%
  • Calendar Year 2027: 80%
  • Calendar Year 2028: 90%
  • After December 31, 2028: 100%
• Critical Minerals - the battery must include a minimum of __% minerals that were recycled in the United States, or extracted or processed in the United States or nation with which the United States has a free trade agreement to qualify for $3,750:
  • before January 1, 2024: 40%
  • Calendar Year 2024: 50%
  • Calendar Year 2025: 60%
  • Calendar Year 2026: 70%
  • After December 31, 2026: 80%

There are also two exclusions:

1. After December 31, 2023: any Battery Components manufactured or assembled by a "foreign entity of concern" eliminate the entire vehicle from eligibility regardless of domestic content
2. After December 31, 2024: any Critical Minerals extracted, processed, or recycled by a "foreign entitiy of concern" eliminate the entire vehicle from eligibility regardless of domestic content

Reading between the lines here, since only the Critical Minerals criteria tightens for 2025 CY (from 50% to 60%) while the Battery Components criteria remained at 60% for both 2024 and 2025, if both $3,750 criteria are being lost, it is likely the "foreign entity of concern" excusion for Critical Minerals that takes effect Jan 1 that disqualifies the entire vehicle.

https://www.congress.gov/bill/117th-congress/house-bill/5376/text

 

[RickLightning]

I was typing my response, when @Charge_Rob nailed it. It's very clear that no Ford vehicles qualify for that reason. Nothing unclear in my mind.

 

[TaxmanHog]

Folks eligible for the credit and pondering a purchase should not delay the decision.

 

[3rdgenfan]

Folks eligible for the credit and pondering a purchase should not delay the decision.

So now I've got a week to find a Lariat that isn't Oxford White or Black which has Max Tow/Pro Power but also no charger or other addons so it qualifies for the $7500. Should be easy lol.

 

[PrimeRisk]

Wow, this could have some serious impacts on insuring these vehicles.

A friend who's Tesla was totaled in the first year of ownership got a payout from the at-fault party's insurance company for full replacement value less the Fed and Colorado credits under the assumption that they would qualify for those. I got $12,500 in government incentives for my Lightning and if it gets totaled, I'd sure hate to have to cover that $12,500 to replace it.

 

[RickLightning]

Wow, this could have some serious impacts on insuring these vehicles.

A friend who's Tesla was totaled in the first year of ownership got a payout from the at-fault party's insurance company for full replacement value less the Fed and Colorado credits under the assumption that they would qualify for those. I got $12,500 in government incentives for my Lightning and if it gets totaled, I'd sure hate to have to cover that $12,500 to replace it.

Your friend should challenge his insurance company.

 

[Maineiac12]

Wow, this could have some serious impacts on insuring these vehicles.

A friend who's Tesla was totaled in the first year of ownership got a payout from the at-fault party's insurance company for full replacement value less the Fed and Colorado credits under the assumption that they would qualify for those. I got $12,500 in government incentives for my Lightning and if it gets totaled, I'd sure hate to have to cover that $12,500 to replace it.

That’s BS because what if the guy didn’t want to buy another EV? Or bought an EV that didn’t qualify? Or his income was too high? I think that’s a mistake that could be challenged with the insurance commissioner of their state.

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