No more EV tax credit? Honda slashes prices on the Prologue

Ippolito Visconti Author Automotive
Federal EV tax credits are set to expire soon. Honda has anticipated the issue and is preparing an aggressive plan.
honda prologue 2025

Honda’s Prologue and its premium counterpart, the Acura ZDX, are experiencing a remarkable surge in the US market, even outpacing their General Motors electric SUV counterparts. In the first half of the year alone, Honda sold 16,317 Prologue units and 12,736 ZDX models, confirming the strong appeal of the brand’s EV strategy.

However, this momentum could soon face a serious challenge. Federal EV tax credits are set to expire by the end of September 2025, potentially weakening the financial case for these vehicles. Honda has anticipated the issue and is preparing an aggressive plan to keep its EV pricing competitive.

honda prologue 2025

The 2026 Prologue would come with discounts of up to $9,000. To unlock the full benefit, buyers will need to finance or lease through Honda Financial Services for a $6,000 rebate, while an additional $3,000 will be available either as a loyalty incentive for returning Honda customers or as “conquest cash” for those switching from rival brands. Still, the savings for the 2026 model pale in comparison to the current offers.

The 2025 Prologue is available with discounts of up to $17,000, or as much as $20,500 in Zero-Emission Vehicle states like California, Colorado, and Connecticut. These deals also include 0% financing for up to 72 months, a $9,500 financing bonus, and eligibility for the $7,500 federal EV tax credit through September 30. What remains uncertain is whether the 2026 Prologue will introduce new features or upgrades that justify its reduced discounts.

Honda may even lower the starting MSRP to compensate for the loss of tax credits, a move already adopted by several automakers, including those selling traditional ICE models. For reference, the 2025 Prologue starts at $47,400 before fees, plus a mandatory $1,495 destination charge.

honda prologue 2025

The coming months will reveal whether Honda can sustain its EV momentum by balancing reduced incentives with strong discount programs and possibly more competitive pricing.