- 2025 Prologue qualifies for the full $7,500 federal clean vehicle tax credit after Honda switched to North American battery cells in mid‑2025.
- All 2025 Prologue trims are under the $80k MSRP cap, eligible for the full credit, and credit is transferable as an instant dealer discount.
- IRS and FuelEconomy.gov list the 2025 Prologue as eligible; 2024 models with Korean cells only qualified for $3,750.
Yes – the 2025 Honda Prologue does qualify for the full $7,500 federal clean vehicle tax credit (and in many cases the $7,500 is also transferable as an instant discount at the dealership).
Here’s exactly why, how to confirm your specific trim qualifies, and what has changed since the car launched in 2024.
Quick Summary (December 2025 status)
| Model Year | Battery Origin | Final Assembly | MSRP Cap Met? | Full $7,500 Credit? | Transferable at Dealer? |
|---|---|---|---|---|---|
| 2024 Honda Prologue | South Korea (LG) | USA (Ohio) | Yes | No (only $3,750) | No |
| 2025–2026 Honda Prologue | North America (now U.S.-sourced cells) | USA (Ohio) | Yes (all trims under $80k) | Yes – full $7,500 | Yes |
The big change happened in mid-2025 when Honda switched to North American battery cells, satisfying the final piece of the Inflation Reduction Act rules.
Why the 2025 Honda Prologue Now Gets the Full $7,500 Credit
The federal EV tax credit has two separate $3,750 halves:
- $3,750 – North American final assembly
✓ The Prologue is built at Honda’s plant in Ohio alongside the Acura ZDX - $3,750 – Critical minerals & battery components requirement
✓ Starting with 2025 model-year production (VINs beginning with 5FN or higher), Honda sources battery cells from the new LG Energy Solution factory in Ohio and other North American suppliers.
✗ 2024 models used Korean-made LG cells → only qualified for half the credit.
Official confirmation comes from:
- IRS qualified vehicle list (updated October 2025) – 2025 Honda Prologue listed at $7,500
- FuelEconomy.gov – 2025 Prologue shows “Eligible for $7,500”
Which 2025 Honda Prologue Trims Qualify?
| Trim | Approx. MSRP | Eligible for Full Credit? | Notes |
|---|---|---|---|
| Prologue EX FWD | $48,795 | Yes | Cheapest way to get $7,500 |
| Prologue EX AWD | $51,795 | Yes | |
| Prologue Touring FWD | $53,395 | Yes | |
| Prologue Touring AWD | $56,395 | Yes | |
| Prologue Elite AWD | $58,750 | Yes | Still under $80k cap |
All current 2025 Prologue trims qualify.
There is no price-cap issue like some competitors (Rivian R1S, GMC Hummer EV, etc.).
How to Get the $7,500 Instantly (Point-of-Sale Transfer)
Since October 2024, buyers can elect to transfer the credit directly to the dealer and get $7,500 off the purchase price or capitalized cost of a lease immediately – no waiting until tax time.
Most Honda dealers are registered with the IRS point-of-sale system.
When you configure your 2025 Prologue on automobiles.honda.com, the payment calculator now shows the credit as an instant rebate if you select “Apply Federal Tax Credit.”
Lease vs Buy – Which Gets You More Money?
- Leasing: Commercial leasing loophole still works in 2025–2026. The credit goes to the leasing company (Honda Financial), who almost always passes the entire $7,500 through as a cap-cost reduction. Recent real-world 2025 Prologue lease deals:
- 2025 Prologue Touring AWD: $299–$349/mo with $2,999 due at signing (effective cost ~$29k after credit over 36 months)
- Buying: You (or the dealer via transfer) get the $7,500 directly.
State & Local Incentives You Can Stack (December 2025)
| State | Additional Rebate | Notes |
|---|---|---|
| California | Up to $7,500 CVRP (waitlist open again) | Income caps apply |
| Colorado | $5,000 state credit | Stackable |
| Illinois | Up to $4,000 | |
| Massachusetts | $3,500 MOR-EV | |
| New Jersey | Up to $4,000 | Point-of-sale |
| New York | $2,000 DRIVE Clean | |
| Oregon | $2,500 (standard) |
Plus 30% ITC on home charger installation (no cap in 2025).
Common Questions About the Honda Prologue Tax Credit
Q: Will the 2026 Honda Prologue still qualify?
A: Yes – Honda has confirmed North American battery supply continues.
Q: I ordered a 2025 Prologue in June 2025 but it was built with Korean cells. Do I get only $3,750?
A: Unfortunately yes. Only vehicles manufactured after the battery switch (roughly July 2025 onward) get the full credit. Check your window sticker or VIN.
Q: Does the Prologue qualify for the $4,000 used EV credit?
A: Yes, when 2–3 year old leased Prologues start hitting the used market in 2026–2027.
Bottom Line – December 2025
The 2025 Honda Prologue is one of the few mainstream EVs that currently qualifies for the full $7,500 federal tax credit (and instant dealer discount).
Combined with strong lease deals, real-world pricing after incentives is landing in the low-$30k to low-$40k range for a 300+ mile, Google-built-in, AWD electric SUV.
If you’ve been asking “does Honda Prologue qualify for tax credit?” – the answer today is a clear yes, full $7,500 for every new 2025 model on the lot.
Ready to configure yours with the credit applied?
→ Official Honda Prologue builder (instant $7,500 shown): https://automobiles.honda.com/prologue
(Updated December 5, 2025 – bookmark this page as we keep the table current through 2026)
