Ford F-150 Lightning Set To Lose Federal EV Tax Credit

[TaxmanHog]

Ford Authority By Brett Foote July 7, 2025 12:19 pm

Following the passage of the Inflation Reduction Act (IRA) of 2022, a number of all-electric and hybrid vehicles became eligible for the new, $7,500 federal EV tax credit, and in some cases, half that amount, depending on certain factors. However, increasing restrictions on countries of origin as it pertains to components like raw materials wound up forcing many new vehicles off that eligibility list in short order, meaning that today, the only new Blue Oval model that qualifies for the full credit is the Ford F-150 Lightning – which won’t be the case much longer.

As Ford Authority reported last week, the federal EV tax credit is now set to end on September 30th, 2025, following the passage of President Donald Trump’s “big beautiful bill” in both the Senate and House of Representatives. That particular date is earlier than two other versions of the bill previously introduced in the House and Senate called for, too. This means that both the $7,500 federal EV tax credit for new lease or purchased electric vehicles will end on September 30th, 2025, which is also true of the $4,000 credit for used EVs.

As such, those that qualify for the existing credit and wish to take advantage of it have only a limited amount of time to do so, if they’re looking to purchase a Ford F-150 Lightning, at least – though the MSRP of that vehicle must be less than $80,000 to qualify. Otherwise, the only other new Blue Oval model that qualifies for the federal tax credit is the Ford Escape PHEV, which gets half that amount, or $3,750.

It is worth noting that some used Blue Oval models qualify for the tax credit as well, which could be worth looking into for those that are looking to save a little cash on that type of purchase. Qualifying used EVs can be had with a $4,000 credit at the moment, but that incentive will also disappear at the end of September, too.

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[RickLightning]

What a clickbait bullshit title. The title should read "ALL EVs ARE LOSING THE TAX CREDIT ON 9/30/25".

 

[TaxmanHog]

Are the other brand focused newsletters also embellishing the change and it's impact on 'their' sales potential? Ford Authority isn't the WSJ................

 

[MountainAlive]

The rest of the world has moved on to digital photos and the USA is still pushing for film cameras as the future. That’s my EV analogy for how incredibly dumb this US policy is toward EVs. Despite that, EVs will still win in the long run so Ford better not let off the accelerator pedal on this or they’ll be toast.

 

[Piquette]

Well, at least the $250 yearly tax on EVs didn’t make it to the final version of the bill.

 

[Highpi]

Well, I was planning on buying a new or used one in October. I guess I might have to rethink my timing.

 

[HOTAS]

A product should be able to stand on its own without mandates and tax incentives. Such have been going on for over 2 decades now, both Federal and State. And yet, overall EV sales have been disappointing at best.
Why?
When misguided groups and their leaders, recently start bashing & burning and trashing the best, most successful, EV brand Tesla….All because Musk showed a little patriotism…. It’s not helping the cause!
That little tantrum did more to harm EV sales and acceptance than any tax credit repeal. That’s on YOU! kids.
We’ve had over 20 YEARS of Federal and State tax incentives and mandates, yet look how lackluster the EV market is here.
I’d wager that most Lightning owners are first time EV buyers. You know what a great product it is and probably love all the things that make an EV awesome.
But where were YOU for the last 20 years?
Even with a tax incentive Lightning sales only take off when there are major price cuts and financing incentives.
The root of the problem has been debated endlessly…. ignorance, social acceptance, general awareness, endless (social) media bashing, personal safety, violence and property damage, misrepresentation, price, Mfr’s, dealers, charge network, range anxiety….blah blah.
It ain’t Trump.

The real irony …. it’s just a vehicle that runs on electricity.
Why all the fuss?

 

[FloridaMan655321]

A product should be able to stand on its own without mandates and tax incentives. Such have been going on for over 2 decades now, both Federal and State. And yet, overall EV sales have been disappointing at best.
Why?
When misguided groups and their leaders, recently start bashing & burning and trashing the best, most successful, EV brand Tesla….All because Musk showed a little patriotism…. It’s not helping the cause!
That little tantrum did more to harm EV sales and acceptance than any tax credit repeal. That’s on YOU! kids.
We’ve had over 20 YEARS of Federal and State tax incentives and mandates, yet look how lackluster the EV market is here.
I’d wager that most Lightning owners are first time EV buyers. You know what a great product it is and probably love all the things that make an EV awesome.
But where were YOU for the last 20 years?
Even with a tax incentive Lightning sales only take off when there are major price cuts and financing incentives.
The root of the problem has been debated endlessly…. ignorance, social acceptance, general awareness, endless (social) media bashing, personal safety, violence and property damage, misrepresentation, price, Mfr’s, dealers, charge network, range anxiety….blah blah.
It ain’t Trump.

The real irony …. it’s just a vehicle that runs on electricity.
Why all the fuss?

Agree for the most part. We didn't need a tax break to move from CRT monitors to LCD, or from a flip phone to an iPhone. If the product is better, you don't need any financial incentive from the Government.

I think on of the main issues is really close to being resolved and that is charging stations. The last year has really made improvements to where I can now drive to very rural areas that I wouldn't have been able to in the past. The next year is going to be even better.

While I still like gas engines, I mean I still like my 73 F100, I really don't think I'll daily drive an ICE vehicle again. It's just so nice not thinking about gas or maintenance, plus I use the bed outlets multiple times a month. Awesome stuff.

 

[Firn]

Agree for the most part. We didn't need a tax break to move from CRT monitors to LCD, or from a flip phone to an iPhone. If the product is better, you don't need any financial incentive from the Government.

I think on of the main issues is really close to being resolved and that is charging stations. The last year has really made improvements to where I can now drive to very rural areas that I wouldn't have been able to in the past. The next year is going to be even better.

While I still like gas engines, I mean I still like my 73 F100, I really don't think I'll daily drive an ICE vehicle again. It's just so nice not thinking about gas or maintenance, plus I use the bed outlets multiple times a month. Awesome stuff.

The challenge in transitioning to new technologies—like electric vehicles—comes from trying to compete with legacy products that have had decades, even a century, to optimize their supply chains and reduce costs.

Unlike smartphones or TVs, which offer fundamentally new value or experiences to the consumer (and usually at a relatively low price point), electric cars provide the same core function as gas-powered vehicles: personal transportation. The benefits—cleaner energy, lower running costs—are often offset in the consumer's mind by higher purchase prices, limited charging infrastructure, or range anxiety. The core utility is similar, but the cost structure isn't—yet.

It's a bit like trying to open a local shop and go head-to-head with Walmart. You may offer the same products, maybe even better ones, but you're working without the economies of scale, optimized logistics, and razor-thin margins that come from decades of infrastructure development.

In cases like this, market incentives become necessary—not to artificially prop up a worse product, but to give the new entrant a chance to build out its own supply chain, manufacturing base, and economies of scale. You're essentially buying down the upfront cost of progress, creating space for the new product to compete fairly in the long term.

 

[Scorpio3d]

The challenge in transitioning to new technologies—like electric vehicles—comes from trying to compete with legacy products that have had decades, even a century, to optimize their supply chains and reduce costs.

Unlike smartphones or TVs, which offer fundamentally new value or experiences to the consumer (and usually at a relatively low price point), electric cars provide the same core function as gas-powered vehicles: personal transportation. The benefits—cleaner energy, lower running costs—are often offset in the consumer's mind by higher purchase prices, limited charging infrastructure, or range anxiety. The core utility is similar, but the cost structure isn't—yet.

It's a bit like trying to open a local shop and go head-to-head with Walmart. You may offer the same products, maybe even better ones, but you're working without the economies of scale, optimized logistics, and razor-thin margins that come from decades of infrastructure development.

In cases like this, market incentives become necessary—not to artificially prop up a worse product, but to give the new entrant a chance to build out its own supply chain, manufacturing base, and economies of scale. You're essentially buying down the upfront cost of progress, creating space for the new product to compete fairly in the long term.

AMEN!
The vehicle tax credit was a small part of the overall idea behind the IRA. Much of it was focused on getting us up to speed in this country. Other than Tesla we had basically zero EV manufacturing or EV battery manufacturing plants. Oil and gas has many tax incentives but many of them are somewhat hidden from the general public. I own stocks in many of them and have (MLPs for instance)benefited greatly from these policies and now I have benefited from the IRA policies.
The grid here in Texas would have completely fallen apart by now had it not been for renewables (see snowmageddon)and yet we are still one of the largest producers of oil and gas in the United States and probably the world!

 

[NW Ontario Ford Lightning]

in Canada our government EV incentive program had a cap - max payout from the fund. That was reached in October 2024. EV sales didn't drop off a cliff with the end of the incentive program (which was only 5,000CAD , about half of the 7,500USD you guys enjoy down south).
I bought the Lightning in January 2025 (2024 model year) and compared it at the time side by side to a 2024 XLT ICE.
The cost of ownership and operation over a ten year period (yes including differences in insurance cost) for the Lightning is half the cost of the ICE. Mostly due to low electricicy costs and high gasoline prices here, and my above average annual mileage.
The incentive would have been "Icing" on the cake, but wasn't needed to tip the economics in the EV's favour, at least not in my case.

I hear our government are planning to fund the EV program again later this year.

 

[shelnian]

Remember the goal of the EV tax credit was to incentivize making EV batteries in America. What's the new goal?

 

[ryun]

The idea that every product should have some government involvement to succeed is just as laughable as saying the government should have no involvement in any products. Sometimes it makes sense and sometimes it doesn't. That's why they get debated. But shutting it down completely with the thought process that the free market will decide all that is good is silly.

Space flight, weather prediction, WiFi, the PC. Heck even something as old as the Roman aqueducts. All had some level of direct or indirect government financial involvement and all of these have had positive, consequential ripples in our lives today.

I personally consider investing in American EV manufacturing a solid use of tax payer money and would have preferred to see it continue. Especially since the IRA included provisions to phase in stricter origin of manufacturing as time went on. My only real complaint was the leasing loophole. But axing the whole thing in 2 months is just short sighted.

I'm not gonna lose too much sleep over it though. EVs are so close to a tipping point and the momentum the industry has gathered will likely continue without it. For the vast majority of our passenger fleet an EV is a much better automobile than the ICE equivalent and as long as price parity holds they'll win out in the end. We've got cheaper options like the Equinox already and the Bolt, EV3, Slate truck, R2, etc. aren't far behind. Plus you've got a myriad of used EVs waiting to be scooped up. Thankfully the money we've already invested will be paying dividends as the years go on.

 

[MidAtlanticLightningClub]

What a clickbait bullshit title. The title should read "ALL EVs ARE LOSING THE TAX CREDIT ON 9/30/25".

The Mustang Mach E isn't losing the tax credit -- it already doesn't qualify. I guess it's not such clickbait after all.

 

[RickLightning]

Neither is the gas Explorer.

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