Ford and GM have abandoned their controversial plan to extend the $7,500 electric vehicle (EV) tax credit, ending hopes for a last-minute boost to EV sales. So much for Ford and GM’s scheme to extend the EV tax credit—after a couple of Republican senators flagged the plan, the automakers stepped back.
The plan would have let customers continue to claim the tax credit on leased EVs past the September 30th expiration. With EV sales surging in July and August, the move aimed to maintain momentum for buyers rushing to secure incentives.
How Ford and GM Tried to Extend the EV Tax Credit
Unlike Hyundai and Stellantis, which offered cash incentives, Ford and GM devised a unique workaround. They planned to have their finance divisions purchase EVs from dealers before the tax credit expired. The vehicles would then be leased to customers with the $7,500 credit built into the lease.
The strategy was clever but controversial, designed to keep EV buyers motivated while avoiding direct cash rebates.
Why the Plan Fell Apart
The plan unraveled when Republican Senators Bernie Moreno (R-Ohio) and John Barrasso (R-Wyoming) alerted the Treasury Department. They called it a “loophole” and “a total violation of Congressional intent.” Despite clearing the plan with the IRS, GM canceled first, followed by Ford.
This move underscores the political sensitivities around EV tax incentives and highlights how quickly legislative scrutiny can derail automaker strategies.
What This Means for EV Buyers
Without the workaround, EV buyers must now rely on standard tax credits and dealer promotions. Short-term incentives from other automakers may provide relief, but the $7,500 credit is officially no longer extendable by Ford or GM.
Shoppers should act fast and compare offers if they plan to buy or lease an EV soon, as automakers pivot to alternative sales incentives to maintain EV momentum.
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