Particle.news
Download on the App Store
17 ARTICLES
·
1h ago

Federal EV Tax Credit Ends as Ford and GM Deploy Lease Workarounds

Automakers turn to lease-based discounts to cushion demand after the federal incentive expires.

These U.S. States Still Offer Rebates For EVs And PHEVs: Buying Tips
©
Jim Farley, CEO of Ford Motor Company, poses with the new all-electric F-150 Lightning performance truck at its reveal at Ford World Headquarters on May 19, 2021 in Dearborn, Michigan. The truck will be built at the all-new Ford Rouge Electric Vehicle Center in Dearborn starting in the Spring of 2022.

Overview

  • The $7,500 federal incentive for retail EV purchases ended on Sept. 30 under President Donald Trump’s One Big Beautiful Bill Act.
  • Ford Credit and GM Financial are making down payments on dealer-held EVs so leases can reflect a $7,500 savings, with Ford’s program running through Dec. 31 and GM offering deals at participating dealers while supplies last.
  • EV sales surged before the cutoff, with Cox Automotive estimating 146,332 EVs sold in August and market share around 10%–11% for the quarter as buyers rushed to qualify.
  • A pullback is widely expected, with the Congressional Research Service projecting a 25%–30% sales decline and Ford CEO Jim Farley saying U.S. EV share could drop to about 5%.
  • IRS guidance allows buyers with a binding contract and payment by Sept. 30 to still claim the credit after delivery, and some states like Illinois plan new rebates up to $4,000 starting Oct. 28.