Ford and General Motors are in a race to enlist car dealers in programs that would extend the availability of a $7,500 USD tax credit on electric vehicle leases beyond the federal subsidy’s expiration on Tuesday, according to sources and documents. Both companies have recently introduced programs to their dealers, where the automakers’ financing arms would trigger the purchase of EVs in dealer inventories by providing down payments. These down payments would make the lending arms eligible for the federal tax credit. Dealers would then offer leases on these vehicles to customers for several more months with the $7,500 subsidy included in the lease rate.
The objective of these programs is to mitigate the impact of the tax credit’s expiration, which has incentivized EV adoption for over 15 years. General Motors stated on Monday that they collaborated with their dealers to extend an offer allowing customers to benefit from the tax credit on EV leases. Ford also announced that it is working on offering competitive lease payments through Ford Credit for Ford EV customers until December 31.
Industry experts anticipate a decline in EV sales and leasing following the tax credit’s expiration, as customers rushed to purchase EVs in the months leading up to the deadline. The tax credit’s end date was set for September 30 by President Donald Trump’s tax bill signed in July. It remains uncertain if other automakers are considering similar strategies to prolong the utilization of the tax credit to sell their EVs. Ford and GM developed these programs after consulting with the Internal Revenue Service, as per sources. The IRS had previously mentioned in August that vehicles must be bought by September 30 to qualify for the $7,500 tax credit.
