Program aimed to extend $7,500 lease credit post-deadline
General Motors has scrapped a plan that would have allowed its dealers to continue offering the $7,500 federal tax credit on electric vehicle (EV) leases beyond the September 30 expiration date. The company confirmed the decision on Wednesday after facing scrutiny from political figures, including Ohio Republican Senator Bernie Moreno.
The original plan involved GM’s finance arm, GM Financial, purchasing EVs from dealer inventory, claiming the federal subsidy on each unit, and using those funds to offer customers competitive lease terms through the end of 2024. GM had already begun executing the plan by making down payments on approximately 20,000 EVs either on dealership lots or en route.
Political concerns prompt sudden cancellation
Senator Moreno, a former car dealer known for his active role in shaping auto policy, raised concerns about GM’s strategy. Though the company did not cite specific reasons, it issued a statement saying, “After further consideration, we have decided not to claim the tax credit.”
Moreno welcomed the decision, stating, “The EV subsidies ended September 30 and I’m happy that every car company is going to abide by that.” He also expressed interest in collaborating with GM on future efforts to support the domestic auto industry.
Dealers and customers impacted by the decision
GM’s program was meant to alleviate pressure on dealers, who feared being left with unsellable EVs post-subsidy. Documents provided to dealers showed GM Financial would cover 5% of a vehicle’s maximum price as a down payment — for example, around $6,300 on Chevrolet Blazer EVs priced in the mid-$60,000 range.
The last-minute program was rushed out on a September 29 dealer call, just one day before the subsidy’s expiration. According to insiders, GM had learned Ford was launching a similar initiative and responded swiftly to maintain competitiveness. It remains unclear whether Ford is continuing its version, as a spokesperson declined to comment.
Sales outlook dims after subsidy expiration
Industry analysts expect EV sales to decline sharply following the tax credit cutoff. A surge of consumer interest in September, driven by the looming deadline, contributed to record EV sales that month. Without the credit, both dealers and automakers anticipate a challenging environment for moving electric inventory.
Though the tax credit program is no longer in effect, GM stated it would continue to fund incentive lease terms through the end of October, offering some short-term relief for dealers and customers alike.
