Is the Ford F-150 Lightning Next on the Tax Credit Chopping Block?
It’s an exciting time in the world of electric vehicles. Electric vehicles are so new that many consumers aren’t completely aware of all the existing incentives available thanks to the U.S. Government. Automakers like Tesla have already reached a sales threshold that bars the company’s EVs from tax credit eligibility. Toyota is on its way to completely losing its tax incentive eligibility as well. Are Ford and the F-150 Lightning electric pickup truck next on the chopping block?
Is the Ford F-150 Lightning going to lose tax credit eligibility soon?
The Ford F-150 Lightning is incredibly popular despite just rolling off of the assembly line a few months ago. Ford amassed at least 200,000 F-150 Lightning reservations. While these sales numbers may be music to the Blue Oval’s ears, they could spell trouble for potential buyers.
The F-150 Lightning has crossed the sales threshold of 200,000 EV sales, so the EV tax incentive will likely begin to phase down soon. This means that the electric pickup truck will no longer be eligible for the full $7,500 tax credit. Instead, consumers will only be able to save $3,500 from the initial incentive. The incentive will continue to phase down levels until it is completely phased out for the automaker.
Toyota is currently experiencing its first phase down, and consumers should be worried. To sum it all up, the U.S. government is telling potential electric vehicle buyers “ya snooze, ya lose.” F-150 Lightning reservations filled up quickly. Thousands of potential buyers will miss out on the full tax incentive on the F-150 Lightning without even being aware of the truck’s fading eligibility.
You’ll have to pay over $36K for an F-150 Lightning
For some 200,000 lucky reservation holders, a $32,500 F-150 Lightning was too good of a deal to pass up. Many consumers had the foresight to reserve an electric truck from the first batch of EVs, knowing that the tax incentive wouldn’t last forever.
This isn’t the greatest news for F-150 Lightning fans, but there is a lesson and a golden opportunity here. If you want the F-150 Lightning and missed out on the full incentive, prepare yourself for the second batch of electric trucks. The next phase down from the full incentive is a $3,750 tax credit. This will bring the base model’s price above $36K. This may seem steep, but it’ll only get worse as time goes by and the incentive continues to phase down.
Car and Driver claims that the base model is “fairly spartan.” The longer you wait to order an F-150 Lightning, the further away upper trim levels get from affordability. The full tax incentive will undoubtedly be some Americans’ only hope of affording the XLT second trim level.
Is it time for a revised EV tax incentive?
Sure, electric vehicles are becoming more common, but they are still a rare sighting on many American roads. The tax incentive was initially created to promote the sale of eligible hybrid and electric vehicles. The current administration aims to reduce carbon emissions, but do our policies really reflect the sentiments of President Joe Biden?
The fight to popularize electric vehicles has only just begun and automakers are going to need all the help they can get, especially with talks of a nationwide recession. It’s evident that Americans can benefit from the full federal electric vehicle tax incentive now more than ever before as more options become available. Maybe it’s time that the incentive be revised to adapt to the current market and the American economy.
Read more about the F-150 Lightning in the next article below.