Are Ford EV Electricity Tax Credits Still Available?

The federal Ford EV tax credit is no longer available on new purchases. The One, Big, Beautiful Bill Act, signed July 4, 2025, terminated the Section 30D new clean vehicle credit, the Section 25E used clean vehicle credit, and the Section 45W commercial clean vehicle credit for any vehicle acquired after September 30, 2025.¹ If you signed a binding contract and made a payment on or before that date, you can still claim the credit when your Ford is delivered. And whether you bought before or after the cutoff, you still owe state EV registration surcharges and taxes on the electricity you use to charge.

What Expired on September 30, 2025

Three credits ended on the same date: the $7,500 new clean vehicle credit under Section 30D, the used clean vehicle credit worth up to $4,000 under Section 25E, and the commercial clean vehicle credit under Section 45W.¹ Congress did not enact a replacement.

For anyone shopping a Ford EV in 2026, the sticker price is the price. The F-150 Lightning, Mustang Mach-E, and E-Transit cargo van no longer carry a federal purchase incentive. State-level rebates may still apply depending on where you live, but the federal credit that shaped EV pricing for years is gone.

Claiming the Credit on a Pre-Cutoff Purchase

The transition rule matters if your Ford was on backorder or built to order. If you entered a written binding contract and made a payment (even a small down payment or a trade-in) on or before September 30, 2025, you can still claim the credit when you take delivery, even if delivery lands after the cutoff.²

MSRP and Income Limits

The vehicle’s manufacturer suggested retail price must fall below a statutory cap tied to its classification. Pickups, SUVs, and vans are capped at $80,000; all other vehicles at $55,000.³ The EPA classifies the F-150 Lightning as a pickup and the Mustang Mach-E as a small SUV, so both fall under the $80,000 cap. MSRP includes the base price and factory options but excludes destination charges.

Your modified adjusted gross income must also stay within limits. The IRS uses the lesser of your income for the delivery year or the prior year. Joint filers cannot exceed $300,000, heads of household $225,000, and single filers $150,000.³ If you exceed the threshold in both years, you don’t qualify.

Battery Sourcing Splits the $7,500

The maximum credit of $7,500 is two halves. A vehicle earns $3,750 if the required percentage of its battery components was manufactured or assembled in North America, and another $3,750 if the critical minerals were extracted or processed in the United States or a country with a qualifying trade agreement.³ A specific Ford configuration may qualify for one half, both, or neither. Final assembly must also occur in North America.

Filing and the Transfer Trap

Your dealership files a seller report with both you and the IRS through the Energy Credits Online portal, listing the vehicle identification number and confirming battery capacity.⁴ You attach Form 8936 to your Form 1040 for the year you took delivery.⁵

If you transferred the credit to the dealer at the point of sale for an immediate price cut, the math is different from claiming it on your return. Claimed on a return, the credit is nonrefundable: it reduces your tax bill to zero but does not generate a refund beyond that. Transferred to a dealer, the full credit amount reduces your purchase price even if it exceeds your tax liability for the year, and the IRS will not recapture the excess from you or the dealer.⁶

One recapture scenario does apply. If you transferred the credit at the dealer but your final income exceeds the limits, you must repay the full credit to the IRS on your return.⁶ If your income might cross the threshold, be cautious about taking the discount upfront.

Used Ford EV Credit

The Section 25E credit ended on the same September 30, 2025 date.¹ For qualifying pre-cutoff purchases, the credit is 30% of the sale price up to $4,000. The sale price must be $25,000 or less, and the model year must be at least two years older than the calendar year of purchase.⁷

Income limits are lower than for new vehicles: $150,000 joint, $112,500 head of household, and $75,000 single.⁷ Only purchases through a registered dealer count; private-party sales never qualified. You can claim only one used clean vehicle credit every three years. Report it on Form 8936 with your return for the delivery year.

The Home Charger Credit Is Closing Fast

One federal EV incentive survived the OBBB temporarily. The Section 30C credit covers 30% of the cost of a qualified home charger, up to $1,000.⁸ The OBBB moved the expiration date from December 31, 2032 to June 30, 2026.

A geographic restriction disqualifies many buyers: the charger must be installed in an eligible census tract, defined as either a low-income community or a non-urban (rural) area.⁸ If your address sits in a suburban or urban area that doesn’t meet the criteria, the credit doesn’t apply regardless of income. IRS and Department of Energy tools let you check your tract before you commit to installation.

State Registration Surcharges

Because electric vehicles don’t generate gas tax revenue, most states impose a flat annual surcharge on EVs to fund road and bridge work. Passenger EV fees range from around $50 to over $400 depending on the state, with many in the $100 to $225 range. Heavy commercial electric vehicles like the E-Transit can carry significantly higher fees in some states.

These surcharges sit on top of standard registration, title, and plate fees. You pay them at initial registration and at every renewal. Some states adjust the amount annually for inflation; others hold it fixed until new legislation changes it. Failing to pay the surcharge can block your registration renewal.

Mileage-Based Alternatives

Four states run voluntary road usage charge programs as alternatives to the flat EV fee. Hawaii collects mileage through annual odometer readings at inspection. Oregon ties its per-mile rate to changes in the state fuel tax. Utah and Virginia each offer tracking options ranging from telematics devices to smartphone apps where you photograph your odometer quarterly. All four programs include privacy protections that keep location data from being shared with program administrators.⁹ Low-mileage drivers may save money; heavy drivers usually do better with the flat fee.

Taxes on Charging Your Ford

The electricity that powers your Ford carries its own tax layer. Public charging sessions are generally subject to state and local sales tax like any other retail purchase. A few states have gone further, enacting per-kilowatt-hour excise taxes on electricity sold at charging stations that mirror traditional fuel taxes.

Home charging is taxed less directly. The electricity flows through your regular utility bill and picks up whatever rates and regulatory taxes your utility charges. Some utilities offer time-of-use plans that let you charge overnight at lower off-peak rates. Those plans still include applicable regulatory taxes, but the cost per mile driven is typically well below gasoline. Tracking home charging costs alongside your state registration surcharge gives you the clearest picture of your annual tax obligation as a Ford EV owner.

1
Internal Revenue Service. One, Big, Beautiful Bill Provisions
2
Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under the One, Big, Beautiful Bill
3
Office of the Law Revision Counsel. 26 USC 30D Clean Vehicle Credit
4
Internal Revenue Service. Instructions for Form 8936 – Clean Vehicle Credits
5
Internal Revenue Service. How to Claim a Clean Vehicle Tax Credit
6
Internal Revenue Service. Topic H – Frequently Asked Questions About Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicles Credit
7
Internal Revenue Service. Used Clean Vehicle Credit
8
Office of the Law Revision Counsel. 26 US Code 30C – Alternative Fuel Vehicle Refueling Property Credit
9
National Conference of State Legislatures. States Look to Mileage Based Fees to Replace Gas Tax Revenue