EV Tax Credit Changes: Ford Mustang Mach-E Unlikely to Qualify in 2024

Chris Teague
by Chris Teague

Earlier this year, the rules around EV tax credits seemed to be changing every other week. While things have calmed down since then, we’re about to see more action on the topic, as the Treasury recently released new guidance on battery materials sourcing that will upend credits for some EVs. The Ford Mustang Mach-E is one of them, as it may lose the partial credit it currently qualifies for.

Ford acknowledged as much, noting that the model on sale now is unlikely to qualify. Unsurprisingly, the automaker announced a production cut for the SUV in October and said it was delaying further investments, including the much-talked-about BlueOval project in Kentucky.

While Ford is telling its dealers that this is an opportunity to move some Mach-Es before the end of the year, it’s a troubling reversal from the automaker. Just a couple of years ago, Ford said it planned to triple Mach-E production, and we’re now hearing that it will cut output. The company has noted on multiple occasions that its electric business is losing money, and while it’s not abandoning EVs entirely, Ford has undoubtedly let off the throttle a bit in recent months.

The new tax credit guidance includes stricter requirements on battery sourcing locations. Going forward, battery components from a “foreign entity of concern” (China) won’t be eligible for credits. The rules expand again in 2025 to include battery minerals.

[Image: Ford]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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18 of 31 comments
  • EBFlex EBFlex on Dec 07, 2023

    This is great news. Hopefully all EVs are disqualified from the ridiculous tax credit.

  • Jkross22 Jkross22 on Dec 07, 2023

    Good. Unless you actually use your vehicle for work, no one should be getting a subsidy to buy or lease a car.

    • See 9 previous
    • VoGhost VoGhost on Dec 08, 2023

      I'm happy to give back the $7,500 that I saved in taxes when I bought my car, just as soon as all the corporate welfare for fossil fuels is ended.

  • ToolGuy ToolGuy on Dec 07, 2023

    "it’s a troubling reversal from the automaker"

    • Trouble for whom? Doesn't trouble me.

  • 285exp 285exp on Dec 11, 2023

    If the conversion to EVs was really so vital to solve an existential climate change crisis, it wouldn’t matter whether they were built by US union workers or where the batteries and battery materials came from.

    • MarkInMI MarkInMI on Dec 15, 2023

      Yes, it's obvious that climate change is the just pretext -- more money for unions is the more important consideration.