Ford and General Motors have introduced dealer programs aimed at extending the $7,500 federal tax credit for electric vehicle leases beyond its expiration on Tuesday, according to dealers and company documents seen by Reuters.
Under the initiatives, each automaker’s financing arm would make down payments on EVs in dealer inventory, qualifying for the federal tax credit. Dealers would then offer leases to retail customers, incorporating the subsidy into lease rates. The programs are intended to reduce the impact of the tax credit’s expiration, which has supported EV adoption for more than 15 years.
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GM told Reuters that it “worked with our GM dealers on an extended offer for customers to benefit from the tax credit for leases.” Ford said it was providing competitive lease payments through Ford Credit until Dec. 31.
Dealers and analysts have warned that EV sales and leasing could decline sharply following the end of the federal subsidy, after a surge of purchases by buyers seeking to beat the deadline. The programs were reportedly developed following discussions with the Internal Revenue Service, though the agency did not immediately comment.
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The IRS had previously stated that vehicles must be purchased by Sept. 30 to qualify for the credit, noting that “you can demonstrate acquisition by entering into a binding written contract and making a payment on the vehicle on or before Sept. 30.”