Jeep shoppers in 14 states can qualify for a five-figure discount on the popular Wrangler 4xe plug-in hybrid (PHEV). The offer is available only on leased Wranglers and only in 14 states (and the District of Columbia) that follow a more stringent set of emissions rules than others.
But, for those who qualify, the offer shaves up to $11,500 off the price of the Wrangler 4xe (which starts at $54,735 for 2023 models and a lower $49,995 for 2024 since a new base model has been introduced.). The offer applies to the Wrangler 4xe Willys trim.
About the Plug-in Wrangler
You’re almost certainly familiar with the Wrangler – the off-road-oriented SUV that pops up in your mind when someone says the word “Jeep.”
The Wrangler PHEV looks identical except for a few electric blue highlights in its design. What’s unique about it is its plug-in hybrid drivetrain. It combines a turbocharged 2.0-liter 4-cylinder engine with a pair of electric motors. That gives it a total output of 375 horsepower (quite powerful for a Wrangler).
It can travel up to 21 miles on electric power alone before using its gasoline engine. The EPA rates it for the equivalent of 49 mpg in combined city and highway driving.
Why Only Leased Vehicles?
Congress wrote new rules governing federal tax incentives for electric cars and PHEVs that kicked in early this year. The new rules work differently for purchased and leased cars.
Related: How Do Electric Car Tax Credits Work?
Purchased cars can qualify for a tax incentive of up to $7,500. Cars must be built in North America to qualify at all. They qualify for half the discount if at least 50% of their battery is assembled in North America. They qualify for the other half if at least 40% of certain critical minerals in the battery originate in the U.S. or certain partner countries. Both requirements ladder up by 10% next year.
When purchased, the Wrangler 4xe qualifies for just half the discount — $3,750.
The rules are less stringent for leased cars. The Wrangler 4xe qualifies for the full $7,500 when leased.
Why Only Certain States?
The federal government sets emissions standards that apply in all 50 states. But the state of California sets its own, more restrictive requirements. Thirteen other states and the District of Columbia have adopted those. They’re known as CARB standards, for the California Air Resources Board, which wrote the rules.
The CARB states are California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington.
Earlier this year, Jeep parent company Stellantis started stocking the gas-only Jeep Wrangler at dealerships in non-CARB states and the plug-in hybrid Wrangler 4xe at dealerships in CARB states. It’s still possible to order both cars in every state. But dealers only keep one or the other in stock, depending on their state’s emissions rules.
Along with the $7,500 incentive, Jeep is offering up to $4,000 in enticements in CARB states. The offer does vary from state to state, so be sure to read the fine print for Jeep’s offer in “lease support.”
