$7500 Tax Credit on Ford Vehicles
$7500 Tax Credit on Ford Vehicles
Thinking about getting an electric Ford? Good news—you might qualify for up to $7,500 in federal tax credits! This incentive makes EVs more affordable by lowering your tax bill. But how does it work, and who qualifies?
What is the $7500 Tax Credit?
The federal government offers a tax credit of up to $7,500 to encourage people to switch to electric vehicles (EVs). Instead of a rebate or cash back, this credit reduces the amount of federal taxes you owe. The credit is nonrefundable, meaning it can bring your tax bill down to $0, but you won’t get extra money back. Unused portions don’t roll over—if you qualify for $7,500 but only owe $5,000 in taxes, you can only use $5,000 of the credit. Lastly, the amount you get depends on the vehicle’s battery capacity, among other factors.
Who can qualify?
To be eligible, both and the vehicle need to meet certain requirements:
Vehicle requirements:
- Must be brand new (not used or for resale).
- Must be used primarily in the U.S.
- Needs a battery capacity of at least 7 kWh.
- Must be made by a qualified manufacturer (Ford is one of them!).
Income and price limits:
- As of 2025, there are no income restrictions, but since this is a tax credit (not a rebate), you must owe federal taxes to use it.
- Price Caps:
- Passenger cars: $55,000 max MSRP
- Trucks, SUVs, and vans: $80,000 max MSRP
Which Ford vehicles qualify?
As of March 7, 2025, these Ford EVs qualify for the tax credit:
- Ford F-150 Lightning – Eligible for up to $7,500, as long as it stays under the $80,000 price cap.
Eligibility can change based on where the vehicle is manufactured or supply chain updates, so always double-check with your dealer or visit Ford’s website before buying.
Can you partially qualify for the tax credit?
Yes! Even if you don’t get the full $7,500, you might still qualify for a partial tax credit based on:
- Your tax bill – if you owe less than $7,500 in federal taxes, you can only claim up to what you owe.
- Battery size – Some vehicles with smaller batteries qualify for a reduced credit instead of the full amount.
If you’re not sure how much of the credit you can use, a tax advisor can help!
The $7,500 federal tax credit is a huge perk for Ford EV buyers, helping make electric vehicles more affordable. If you’re thinking about getting a F-150 Lightning, now’s the time to take advantage of these savings!