2024 Honda Prologue and Acura ZDX qualify for US tax credit
The Acura ZDX can already be ordered, while the Prologue should arrive at US dealers in the coming weeks. Honda’s Acura ZDX electric SUV starts at 64,500 dollars (without the subsidy) and is available with a single-motor RWD with 254 kW as well as a dual-motor. The latter is available from $73,500 in the US. The single-motor variant has an EPA range of 313 miles, while the dual-motor version has a maximum range of 278 to 304 miles.
Both vehicles are built by General Motors and feature the Ultium battery and propulsion technology. GM itself announced in February that its Cadillac Lyriq would again qualify for the tax credit after losing eligibility from January 2024.
The US changed the guidelines defining the sourcing requirements for battery components and materials that must be met in order for electric vehicles to qualify for the subsidy. The latter went into effect in January. The main idea behind the new sourcing regulation is to support domestic battery material and cell production in the US. It stipulates that to qualify for the full tax credit, from 2024 onwards, electric vehicles will no longer be allowed to use battery components manufactured or processed by a company from a country considered a “Foreign Entity of Concern” (FEOC).
Ford was another carmaker affected by the change in guidelines. The Mustang Mach-E no longer qualifies, prompting the carmaker to slash prices in the US and Canada. At the end of January, Volkswagen confirmed to customers that the MY24 ID.4 would qualify for the tax credit, as it uses battery cells from SK On from the US state of Georgia.
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