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1h ago

GM Abandons EV Tax Credit Workaround, Will Self-Fund Lease Deals Through October

The reversal follows GOP senators urging Treasury to block captive-finance tactics.

A Ford Ranger Raptor is seen at a Ford event in Michigan, U.S., May 5, 2023. REUTERS/Joe White
A white Rivian R1S in the late afternoon sun, seen head-on
The GM Energy PowerBank is available for purchase as part of the GM Energy Home System bundle, which also includes a GM Energy PowerShift charger and GM Energy Vehicle-to-Home Enablement kit
GM has decided not to go forward with a program that would have allowed customers leasing new EVs like the Chevy Equinox to benefit from the $7,500 federal tax credit after it expired Sept. 30. (Henry Payne/The Detroit News/TNS)

Overview

  • GM said it will not claim the expired $7,500 federal credit on dealer-stock EVs and has scrapped its plan to extend the subsidy via leases.
  • The shelved program would have used GM Financial to purchase dealer inventory just before the deadline, then pass the credit’s value to lessees.
  • GM will instead cover roughly $6,000 per lease from corporate funds through the end of October, according to a company spokesperson.
  • Republican Senators Bernie Moreno and John Barrasso pressed Treasury Secretary Scott Bessent to close what they called an IRS loophole, intensifying scrutiny of the automaker strategies.
  • Ford rolled out a similar approach, and its status remains unclear as the company did not respond to requests for comment.