Electric vehicle (EV) buyers in the United States can breathe a sigh of relief as General Motors and Ford have come up with a plan to extend the $7,500 EV tax credit for their customers. This move comes as the tax credit expires for other automakers today, leaving potential buyers concerned about inflated prices and reduced discounts on EVs.
According to a report by Reuters, both GM and Ford are working with their dealers to offer a program that allows customers to lease EVs with the $7,500 subsidy factored into the price. The automakers’ financing arms have purchased the EVs from dealers and made the initial down payments on them to qualify for the federal tax credit. This means that customers can lease popular models like the Ford Mustang Mach-E and Chevy Equinox EV with the discount still applied.
Ford’s program is set to run until December 31, while GM’s program will be available “while supplies last.” This initiative aims to keep EV sales strong and competitive, especially as the federal EV tax credit ends today. The credit, which was part of the Biden-era Inflation Reduction Act, offered up to $7,500 off the purchase of a new electric car. However, President Trump’s One Big Beautiful Bill Act terminated the credits, prompting automakers to find alternative solutions to keep EV sales going.
The so-called “lease loophole” allowed EVs that were leased to be eligible for the full $7,500 credit, leading to a surge in EV leasing over the past few years. Ford and GM’s new programs aim to capitalize on this loophole and continue offering discounts to customers even after the tax credit expires. Analysts predict that EV sales in the US may decline in the fourth quarter of 2025 and into 2026 without the tax credit, but automakers are optimistic about the future of electric vehicles as battery costs decrease.
As the automotive industry shifts towards a more electric future, initiatives like the ones introduced by Ford and GM will play a crucial role in making EVs more accessible and affordable to a wider range of customers. With the lease programs in place, customers can still enjoy the benefits of the $7,500 tax credit when leasing popular EV models from these automakers. This strategy not only benefits customers but also ensures that EV sales remain strong in the absence of federal tax incentives.