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GM and Ford Drop EV Tax-Credit Workarounds After GOP Pushback

Political pressure over a perceived loophole pushed the automakers to drop captive‑finance schemes in favor of company-funded incentives.

Overview

  • General Motors said it will not claim the $7,500 federal EV tax credit and will instead self-fund about $6,000 in lease support through the end of October.
  • Ford confirmed it will not claim the credit and will keep current lease payments in place, with Ford Credit offering 0% financing for 72 months on some EVs.
  • Both companies had planned to use their finance units to buy dealer-stock EVs before Sept. 30 to qualify for the credit under IRS guidance on written binding contracts and upfront payments.
  • Republican Senators Bernie Moreno and John Barrasso criticized the approach and urged Treasury to shut what they called a loophole, prompting swift reversals.
  • The credit expired on Sept. 30 after a late push in EV sales, and industry watchers now expect a near-term drop in demand as automakers rely more on direct discounts and financing.