Changes to the EV tax credit system designed to penalise cars with a Chinese connection have disqualified many popular EVs from some or all of the available allowance. And one of those cars kicked onto the naughty list is the Ford Mustang Mach-E.
But the U.S. government’s subsidy disappearing doesn’t mean there isn’t a great deal to be had where the Mach-E is concerned. Ford has stepped up and is now offering a $7,500 discount off its own back – but only if you lease the Mustang crossover.
Ford’s incentive is available on 2023 model-year Mach-Es until April 2 of this year, and Cars Direct notes that Ford Credit is offering lease rates close to 0 percent APR in various U.S. regions. The automaker’s payment calculator suggests you can lease a Mach-E for 36 months with zero deposit for only $465, Cars Direct says (though I couldn’t seem to get the calculator to replicate that figure myself) versus $653 for an 84-month conventional finance payment deal, the cheapest of its kind Ford currently offers on the Mach-E.
Related: IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024
The revised treasury rules mean EVs with battery components made or assembled by a company based in China, North Korea, Russia, and Iran are not eligible for any part of the tax credit. And yes, that includes Western-brand cars that happen to be built in those same countries. And to qualify for the full $7,500 credit an EV must satisfy criteria stating that at least 50 percent of its battery components comes from the U.S., Mexico or Canada.
Only 13 distinct BEVs and PHEVs are currently available for tax credits under the new rules, though various automakers whose cars no longer qualify say they are working on making sourcing changes to put their EVs back on the right side of the law.