Is Honda Prologue eligible for tax credit?
The Honda Prologue, Honda's first all-electric SUV, has generated significant interest among eco-conscious drivers and EV enthusiasts. With its sleek design and promise of sustainable driving, many potential buyers are curious about whether this vehicle qualifies for federal tax credits. In this article, we’ll explore the eligibility criteria for EV tax credits and how they apply to the Honda Prologue.
Understanding Federal EV Tax Credits
Federal tax credits for electric vehicles (EVs) are designed to incentivize the adoption of clean energy transportation. However, not all EVs qualify for these credits. The eligibility depends on several factors, including the vehicle's manufacturer, assembly location, and battery components. Here are the key criteria:
- The vehicle must be manufactured by a qualified automaker.
- The final assembly of the vehicle must occur in North America (United States, Canada, or Mexico).
- The battery components and critical minerals must meet specific sourcing requirements.
- The vehicle must have a manufacturer's suggested retail price (MSRP) below the set thresholds: $80,000 for SUVs, trucks, and vans, and $55,000 for other vehicles.
- The buyer's income must fall below the specified limits to claim the credit.
Does the Honda Prologue Meet These Requirements?
As of now, Honda has announced that the Prologue will be assembled in North America, which satisfies one of the key requirements for tax credit eligibility. Additionally, Honda has partnered with General Motors to leverage GM's Ultium battery platform, which may help the Prologue meet the battery sourcing criteria. However, the final determination depends on whether Honda can fully comply with the mineral sourcing and battery component rules outlined in the Inflation Reduction Act of 2022.
Another factor to consider is the MSRP of the Honda Prologue. Honda has yet to release the official pricing for the Prologue, but it will need to stay under the $80,000 threshold for SUVs to qualify. Buyers should also ensure their income falls within the limits set by the federal government to claim the credit.
State and Local Incentives
In addition to federal tax credits, buyers of the Honda Prologue may also be eligible for state and local incentives. These can include rebates, reduced registration fees, and access to carpool lanes. The availability and amount of these incentives vary by state, so it’s worth checking your local regulations to maximize your savings.
Conclusion
The Honda Prologue has the potential to qualify for federal tax credits, but its eligibility will ultimately depend on compliance with the detailed requirements for assembly, battery sourcing, and pricing. As Honda releases more information about the Prologue, prospective buyers should stay informed to determine whether they can take advantage of these incentives. Additionally, exploring state and local incentives can further enhance the financial benefits of purchasing this exciting new EV.
Frequently Asked Questions
Is the Honda Prologue eligible for the federal tax credit?
The 2024 Honda Prologue is one of only seven all-electric SUVs currently eligible for the $7,500 federal tax credit! This is an incredible opportunity for environmentally conscious drivers to save big, whether you choose to purchase or lease this innovative SUV.
Is the Honda Prologue only electric?
The spacious Prologue offers over 136.9 cubic feet of room inside the cabin. And with muscular 21-inch wheels and a wheelbase on par with our other rugged vehicles, this all-electric SUV is equipped with some sizeable capability.
How much is the Honda Prologue going to cost?
The 2024 Honda Prologue is an all-new, all-electric midsize SUV with seating for five and a range of up to 296 miles. Pricing starts at $48,850. The Prologue is the first all-electric SUV to come from Honda, spearheading the company's intention to offer 30 electric vehicles by 2030.
Is Honda Prologue bigger than CRV?
The 2024 Honda Prologue electric SUV is larger than the CR-V and comes standard with LED headlights and offers 21-inch wheels and a panoramic roof. Within the 2024 Prologue interior, you'll find seating for up to seven with the optional third-row seat, a spacious center console and a large cargo space.
Is the Honda Prologue selling well?
Honda Prologue was the third best-selling EV in Nov
The electric SUV trailed only Tesla's Model Y and Model 3 in sales. With a record 6,823 Prologue models sold last month, Honda has now sold over 25,000 electric SUVs in the US this year. That's a big difference from not selling a single EV in the US last year.
Which Hondas qualify for tax credits?
So, what are the Honda cars that qualify for an EV tax credit? The federal tax credit will apply to all 2024 Honda Prologues built after February 26, 2024. Whether you choose the single-motor EX or the dual-motor Elite, you could potentially save big on your next purchase!
How many miles will the Honda Prologue get?
296 miles
Honda Prologue models with the front-wheel-drive powertrain can travel up to an EPA-estimated 296 miles on a single charge. If you opt for the all-wheel-drive setup on the EX or Touring model, you'll enjoy an EPA-estimated range of 281 miles on one charge.
How to qualify for the full $7500 federal electric vehicle tax credit?
Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500. Vans, sport utility vehicles, and pickup trucks must not have an MSRP above $80,000, and all other vehicles may not have an MSRP above $55,000.
How many miles does the Honda Prologue get on a full charge?
296 miles
Honda Prologue models with the front-wheel-drive powertrain can travel up to an EPA-estimated 296 miles on a single charge. If you opt for the all-wheel-drive setup on the EX or Touring model, you'll enjoy an EPA-estimated range of 281 miles on one charge.
What vehicles qualify for the tax deduction?
Passenger Vehicles (< 6,000 lbs. GVWR): These follow standard depreciation rules with a lower first-year deduction cap. Heavy Vehicles (Over 6,000 lbs. GVWR): SUVs, trucks, and vans that exceed 6,000 pounds Gross Vehicle Weight Rating (GVWR) qualify for a larger tax write-off for vehicles over 6,000 lbs.
