This decision by Ford and GM to initially extend the $7,500 federal tax credit on new EV leases was seen as a way to incentivize more customers to make the switch to electric vehicles. However, both automakers have now backed out of their plans, leaving potential customers disappointed.
Ford’s decision to cancel its program to claim the EV tax credit means that customers will no longer be able to benefit from the $7,500 discount on new EV leases. Instead, Ford will focus on maintaining competitive lease payments in the market, with its lending arm, Ford Credit, offering 0% financing for 72 months on new EVs and other incentives.
GM also recently dropped its program to pass on the federal tax credit savings to consumers, opting to self-fund lease incentives until the end of October. The decisions by both automakers come after discussions with the IRS and pressure from U.S. Senator Bernie Moreno, who criticized certain car companies for taking advantage of the tax credit.
The cancellation of these programs is expected to have a significant impact on the American EV market, as the $7,500 federal tax credit was a major incentive for customers to make the switch to electric vehicles. With the tax credit now gone, it remains to be seen how automakers will continue to encourage the adoption of EVs in the future.