Impending Loss of Tax Credit for Ford Mustang Mach-E and Other EVs in January

Ford's Mustang Mach-E SUV is likely to lose its eligibility for the up-to-$7,500 tax credit for plug-in car purchases in January 2024. The EV tax credit is changing to include stricter requirements for domestic sourcing of battery components and minerals, as well as a prohibition on Chinese battery components. Ford is still working to understand the implications of the new guidance from the Treasury Department. While discounted prices may offset the lost tax credit, overall Mach-E prices are expected to increase next year. Other automakers are also reviewing the new regulations and their impact on their eligible EV models.