How much is the Honda Prologue tax credit?
The federal electric-vehicle tax credit for a qualifying new Honda Prologue can be as high as $7,500, depending on eligibility. Your actual credit depends on factors such as price, final assembly location, battery materials rules, and your tax liability when you file.
What the credit means for the Prologue
Under current U.S. rules, a qualifying new EV can attract a federal tax credit of up to $7,500. The Honda Prologue, built in North America with GM’s Ultium battery system and priced within the eligible range for SUVs, is positioned to be eligible for the full amount, subject to meeting all requirements. Buyers should remember the credit is nonrefundable and depends on having sufficient tax liability to use it.
The following sections outline the key eligibility points, how to claim the credit, and practical considerations for prospective buyers.
Eligibility snapshot before the list below explains the main criteria that determine whether the Prologue qualifies for the full credit.
- Credit amount: Up to $7,500 for a qualifying new EV, subject to meeting all requirements.
- Final assembly location: Vehicle must be assembled in North America (United States, Canada, or Mexico) with battery components meeting domestic-sourcing rules.
- MSRP cap: SUVs and similar light trucks must have a manufacturer's suggested retail price under $80,000 to qualify for the full credit.
- Battery minerals requirement: A portion of the battery’s critical minerals must be sourced from North America or a country with a free-trade agreement (or be recycled); thresholds apply and ramp up over time.
- Battery components rule: Battery components must be manufactured or assembled in North America.
In practice, the Prologue’s use of North American assembly and GM’s Ultium battery platform helps it meet the criteria, but buyers should verify current eligibility at the time of purchase and be aware that actual credit depends on meeting all rules and on the buyer’s tax situation.
How to claim the credit
To take the credit, you’ll need to follow IRS procedures and keep documentation showing the Prologue’s eligibility. The steps below describe the typical process for a qualifying buy.
- Check eligibility before purchase: Confirm the Prologue and its specific VIN are listed as eligible under IRS guidelines and confirm the final assembly location and battery-sourcing details with Honda.
- Buy within the price cap: Ensure the vehicle’s MSRPs stay under the SUV/truck cap (under $80,000 for the Prologue).
- File Form 8936: When you file your federal taxes, claim the credit by attaching IRS Form 8936 and provide any required vehicle information.
- Be mindful of liability: The credit is nonrefundable, meaning you can only use it to offset your tax liability. If your tax bill is lower than $7,500, you can only apply up to your liability for that year.
- Keep documentation: Save purchase receipts, the vehicle’s VIN, and any Honda documentation verifying how the vehicle meets the sourcing and assembly requirements.
Conclusion: If the Honda Prologue meets all the IRA criteria and you have sufficient tax liability, you can claim up to $7,500 in federal tax credits. If any requirement isn’t fully met, the credit could be reduced or unavailable. Always verify current eligibility with Honda and the IRS before buying.
What else buyers should know
Beyond the federal credit, many states and localities offer additional incentives for EV buyers, which can further reduce the total cost of ownership. Incentive availability and amounts can vary by state and may change over time, so prospective buyers should check current programs in their area and consult their tax professional for personalized guidance.
Summary
The Honda Prologue stands to qualify for the maximum federal EV tax credit of $7,500, provided it meets final-assembly, price, and battery-sourcing requirements and the purchaser has enough tax liability to use the credit. Buyers should verify eligibility at the point of purchase and review any additional state or local incentives to maximize savings.
