Electric 2024 Honda Prologue Qualifies for Full $7,500 Federal Tax Credit
Having been an early pioneer in hybrids with its groundbreaking (and still nerd-cool) first-generation Insight, Honda is finally bringing its first fully electric vehicle to market this year. The five-seat 2024 Prologue SUV offers nearly 300 miles of range and a competitive price that, thanks to the federal EV tax credit, is more attainable than it may first appear.
Related: What Does the EV Tax Credit Overhaul Mean for Car Shoppers?
Taking the maximum $7,500 credit into account, as well as a $1,395 destination charge, pricing for the 2024 Honda Prologue is as follows. All Prologues built after Feb. 26 qualify for the credit, and Prologues that are leased will also qualify.
- EX: $41,295
- Touring: $45,595
- Elite: $51,795
Front-wheel drive is standard on the EX and Touring, with all-wheel drive a $3,000 option; the Elite is only available in AWD. For more info on the Prologue, check out our trim level breakdown and first-drive impressions.
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EV Tax Credit Explained
There are many parts to the federal EV tax credit — instituted with the Inflation Reduction Act of 2022 — but none are individually very complicated. First, in order to be eligible for any credit at all, a vehicle must be manufactured in North America (including Canada and Mexico, where the Prologue is built). To qualify for the first $3,750, at least 50% of the vehicle’s battery components must be assembled in North America. Vehicles in which at least 40% of the critical minerals in the battery pack are extracted, processed or recycled in North America or by a free-trade partner are eligible for the remaining $3,750 of the full tax credit.
The requirements for qualifications are set to get stricter over time. The necessary portion of battery components and critical minerals will increase 10% annually until 2027, when 90% of the battery’s components and 80% of its critical minerals will be required to come from North America or a U.S. free-trade partner.
Tip o’ the (Price) Cap
Additional conditions apply to the vehicle and the buyers themselves. Cars with sticker prices above $55,000 are ineligible, as are trucks and SUVs above $80,000. Additionally, buyers are subject to income limits if they want to claim the EV tax credit. Households cannot earn more than $300,000; a head of household cannot claim more than $225,000; and individuals are cut off at $150,000. But beginning in 2024, eligible buyers can claim the credit at the time of purchase instead of waiting to file their taxes.
More From Cars.com:
- 2024 Honda Prologue Review: A Wrapper-Fresh EV
- 2024 Honda Prologue Up Close: Better Than the Blazer EV?
- Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
- What to Know Before Purchasing an Electric Vehicle: A Buying Guide
- Research the Honda Prologue
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