Is Ford Mustang Mach-E Electric eligible for tax credit?
Yes, the Ford Mustang Mach-E electric vehicle is eligible for a federal tax credit of up to $7,500. This credit is available to buyers of qualifying electric and plug-in hybrid vehicles as an incentive to promote the adoption of eco-friendly transportation options.
Eligibility for the Federal Electric Vehicle Tax Credit
The federal electric vehicle tax credit is a non-refundable tax credit that can be claimed by individuals who purchase a qualifying plug-in electric vehicle. To be eligible, the vehicle must meet certain criteria, including having a battery capacity of at least 5 kilowatt-hours and being primarily powered by an electric motor. The credit amount is determined by the vehicle's battery capacity, with a maximum credit of $7,500 for vehicles with a battery capacity of at least 16 kilowatt-hours.
The Ford Mustang Mach-E and the Tax Credit
The Ford Mustang Mach-E, an all-electric crossover SUV, is one of the vehicles that qualifies for the federal electric vehicle tax credit. The Mach-E has a battery capacity of 68 kilowatt-hours, which exceeds the minimum requirement for the full $7,500 credit.
To claim the tax credit, buyers of the Mustang Mach-E will need to file Form 8936 with their federal income tax return. The credit can be used to offset the buyer's tax liability, effectively reducing the cost of the vehicle.
Considerations for the Tax Credit
- The tax credit is only available for the first 200,000 qualifying vehicles sold by a manufacturer, after which the credit begins to phase out.
- The credit is non-refundable, meaning it can only be used to offset the buyer's tax liability and cannot result in a tax refund.
- The credit is subject to income limitations, with the full credit available only to individuals with a modified adjusted gross income (MAGI) below $250,000 (or $500,000 for joint filers).
Overall, the federal electric vehicle tax credit can provide a significant financial incentive for buyers of the Ford Mustang Mach-E and other qualifying electric vehicles. By understanding the eligibility requirements and limitations of the credit, buyers can make an informed decision about their purchase and maximize the potential savings.
