Table of Contents
- Is the Ford Escape Plug-in Hybrid still eligible for a federal tax credit?
- What you should know about the new federal EV tax credit requirements
- Is the Ford Escape PHEV worth buying?
- What to buy instead of a Ford Escape Plug-in Hybrid
- How to save on electric car insurance costs
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As of November 2022, Ford Escape Plug-in Hybrid (PHEV) models qualify buyers for a $6,843 federal tax credit.
Switching to all-electric and plug-in electric vehicles doesn’t just lower your fuel costs — it can also pump up your tax return, thanks to federal incentives for EV buyers in the form of credits ranging from $2,500 to $7,500 depending on battery capacity.
Here to discuss the federal tax credit that PHEV Escapes are currently eligible for is
trusted insurance brokerand comparison shopping app! We’ll go over the federal credit requirements, other vehicle incentives, and even mention some other EVs and PHEVs you might want to consider. Finally, we’ll help you save on
car insurancefor your next fuel-efficient vehicle.
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Is the Ford Escape Plug-in Hybrid still eligible for a federal tax credit?
Yes, the Ford Escape Plug-in Hybrid (PHEV) is eligible for $6,843 in federal tax credits.
In 2010, the federal government introduced an EV tax credit of up to $7,500 for new electric vehicle purchases, with a cap for automakers who sold over 200,000 electric vehicles. General Motors and Tesla have met their sales cap, meaning that their vehicles are no longer eligible for tax credits.
Then, in August of 2022, President Biden signed the Inflation Reduction Act of 2022, limiting federal EV tax credits to vehicles whose final assembly takes place in North America.
For this reason, plenty of EVs and PHEVs are no longer eligible for credit. Fortunately, the PHEV Escape still meets all of the requirements.
What you should know about the new federal EV tax credit requirements
Not every PHEV or EV is eligible for a federal tax credit thanks to new, more rigid requirements.
In addition to what’s outlined above, there are also income requirements. Single car buyers are only eligible if they make less than $150,000 a year. If you file taxes jointly with a spouse, your combined income cap is $300,000.
Stipulations concerning the vehicle’s price will kick in at the start of 2023. Brand-new sedans must cost less than $55,000 to qualify for tax credits, while trucks, vans, and SUVs must cost less than $80,000. All used vehicles will have a price cap of $25,000, regardless of body style.
There will also be new requirements for battery construction. To qualify for tax credits, EV and PHEV batteries will need to contain a certain percentage of materials from North America or a U.S. free-trade partner and be manufactured and assembled in North America. No electric vehicles currently on the market meet those requirements, meaning that it’ll be incredibly hard to get a federal tax credit in 2023 unless manufacturers make some quick changes.
Other electric vehicle incentives
Keep in mind that the federal tax credit isn’t the only thing out there pushing you to buy an EV or PHEV. There are several other incentives for electric vehicles and plug-in hybrids. Individual states offer rebates and tax credits just for installing an upgraded home charger, for example.
Is the Ford Escape PHEV worth buying?
Obviously, if you’ve got your heart set on a Ford Escape Plug-in Hybrid, we recommend purchasing it as soon as possible, while the $6,843 federal tax credit is still in effect.
But don’t just purchase a vehicle because of possible paybacks—also take the time to consider if it’s the right electrically-powered SUV for you!
The 2023 Ford Escape, as a whole, is an incredibly affordable vehicle with a starting price of $28,995. Of course, the PHEV model is considered the top trim level, so it’ll start at $39,995—still not too bad as far as PHEVs go.
The Ford Escape PHEV can go from 0 to 60 mph in 7.7 seconds, thanks to a 2.5-liter four-cylinder engine paired with two electric motors that combine to make a total of 210 hp.
All in all, the PHEV Escape is a lovely option—but it’s not amazing enough that it makes you forget about what else is out there.
What to buy instead of a Ford Escape Plug-in Hybrid
The good news is that the Ford Escape PHEV isn’t your only option when it comes to EVs and PHEVs. Once a rarity, most automakers offer at least a hybrid SUV, if not a plug-in hybrid or fully electric vehicle. But not all are created equal, and not all qualify for federal tax credits like the Ford Escape.
Most of the vehicles that
still qualify for federal tax creditsbased on their assembly location are luxury vehicles, trucks, or SUVs from manufacturers that have already hit their sales cap. For example, the Audi Q5, BMW X5, and Ford Mustang Mach-E may all be eligible—but they’ll cost you far more than the Ford Escape PHEV.
Unfortunately, you can’t even look at brands like Tesla and Chevrolet, as they have met their 200,000-vehicle limit, so their tax credits will be significantly reduced or unavailable altogether.
But don’t worry—the Ford Escape PHEV isn’t your only affordable option. Here are some other SUVs to check out:
The luxury option: 2022 Lexus NX Plug-In Hybrid
Starting price: $57,300
Possible tax credit: Up to $7,500
The 2022 Lexus NX Plug-In Hybrid will cost you significantly more than the Ford Escape PHEV, but it’s certainly worth it if it’s in your budget.
The NX450h+ borrows its 302-hp plug-in hybrid powertrain from the RAV4 Prime and hits 60 mph in just 5.6 seconds. As for fuel economy, this PHEV is rated for 38 mpg city and 33 mpg highway and the EPA estimates up to 37 miles of all-electric driving on a single charge.
The dependable option: 2022 Hyundai Tucson SEL PHEV
Starting price: $35,975
Many SUV drivers want all-wheel drive but don’t want to spend too much to get it. The Hyundai Tucson, with its mid-range price tag, may just be a perfect fit.
Just launched for 2022, the Tucson PHEV’s battery can last 33 miles on a single charge, plus get 80 MPGe combined. It also comes with an incredibly impressive vehicle warranty—a five-year/60,000-mile limited warranty, 10-year/100,00-mile powertrain warranty, and complimentary maintenance for three years or 36,000 miles.
All of that, plus it’s cheaper than the Ford Escape PHEV.
If you’re ready to go all-electric: 2022 Hyundai Ioniq 5
Starting price: $41,245
Maximum range: 303 miles
Why opt for a PHEV when you could get a fully electrified vehicle? We recommend checking out the Hyundai Ioniq 5, a gorgeous all-electric SUV that won Car and Driver’s 2022 EV of the Year award—while still staying right around the Ford Escape PHEV in terms of price.
Unfortunately, the Ioniq 5 doesn’t qualify for tax credits, but its shockingly affordable price tag and impressive specs might just make up for that. Battery charging speeds up to 350 kW with DC fast chargers, a maximum driving range of 303 miles, and a powertrain that delivers up to 320 horsepower all make buyers turn their heads.
How to save on electric car insurance costs
Even though the federal tax credit is getting harder and harder to qualify for when it comes to EVs and PHEVs, there’s good news—tax credits aren’t the only way to lower your electric car ownership costs!
If you want to save money on car insurance, the
Jerryapp is a good place to start. As a licensed broker, Jerry does all the hard work of finding cheap quotes from name-brand insurance companies and helping you finalize your new car insurance.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. This level of service is why Jerry earned a 4.7/5 rating on the App Store and made it the top insurance app in the country.
“Jerrysaved me $80 a month! I have a Tesla Model Y and really wanted to lower my rates. And they did! I really recommend you give this a shot!” —Nick M.
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