Honda's first electric SUV qualifies for full EV tax credit

Most people who buy Honda’s first-ever electric SUV will be able to take advantage of the full $7,500 EV tax credit offered by the U.S. government.

"The federal tax credit applies to the purchase of all 2024 prologues built after Feb. 26, 2024," the automaker said Thursday in a press release. "All 2024 Prologues will qualify when leased."

The tax credit can make the starting price of the Honda Prologue as low as $39,900 without factoring in delivery and handling, according to Honda. With delivery and handling, the lowest is $41,295.

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The news about the Prologue qualifying comes about six weeks after the automaker revealed that it was targeting March for the electric vehicle’s debut on the market.

Honda has described the Prologue as a "spacious, adventure-ready" midsize SUV that can travel nearly 300 miles with a fully-charged battery. 

It comes in three different trims – EX, Touring and Elite. There are two-wheel and all-wheel drive configurations available for the EX and Touring, while the Elite can only come with all-wheel, according to Honda.

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The automaker first revealed plans to make the Prologue in the summer of 2021. It relies on a "highly flexible global EV platform powered by Ultium batteries" through a partnership with General Motors, it said.

The launch of the Prologue is meant to help Honda’s efforts of transitioning to ultimately only selling electric vehicles in North America. The automaker has said it wants to hit that milestone by 2040.

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Overall, the company wants to become carbon-neutral no later than halfway through the century.