Through a clever loophole, Ford and GM are keeping the incentive alive for buyers.
Key takeaways
- Ford and GM have launched programs to ease blow of expired U.S. EV tax credit
- Dealers warn EV sales could nosedive without federal subsidies
- IRS talks spurred Ford, GM to create relief programs — sources
As the federal electric vehicle tax credit officially expired yesterday, Ford and General Motors have devised an innovative solution to keep the $7,500 incentive alive for their customers—at least through the end of the year.
The expiration marks the end of a subsidy that has existed for over 15 years, designed to accelerate EV adoption across America. The credit was eliminated as part of the Trump administration’s One Big Beautiful Bill, which also removed the $3,750 credit for plug-in hybrids and the $4,000 credit for used EVs. Industry experts had predicted a significant slowdown in EV sales following the deadline, but Ford and GM aren’t ready to let that happen without a fight.
How the Program Works
The two automakers partnered with their dealer networks on programs where finance divisions purchased EVs from dealer inventory with down payments, making those vehicles eligible for the tax credit. The dealers can then lease these vehicles to customers throughout the rest of the year, with the $7,500 discount baked into the lease rate.
This creative approach exploits a crucial detail in the IRS guidelines. In August, the IRS clarified that vehicles must be purchased by September 30 to qualify, and that acquisition could be demonstrated by entering into a binding written contract and making a payment before the deadline. By having their financing arms initiate purchases before the cutoff, Ford and GM effectively secured the credit for inventory that can now be leased to consumers in the coming months.
According to reports, Ford and GM developed these programs after discussions with IRS officials, ensuring their approach complies with federal regulations. While neither company provided extensive details, representatives from both automakers confirmed the accuracy of the program structure.
What This Means for Consumers
The catch? The extended incentive will only be available through leasing, not traditional purchases. For consumers who prefer to own rather than lease, the September 30 deadline was truly final. However, for those comfortable with leasing, this represents a significant opportunity to access substantial savings on electric vehicles well into 2026.
Ford’s program will offer competitive EV lease payments through December 31, 2025. While only the F-150 Lightning was eligible for the federal credit among Ford’s EVs, the program should help maintain momentum for the popular electric pickup.
GM has a considerably more extensive lineup that will benefit, including the Cadillac Lyriq, Optiq, and Vistiq, plus electric versions of the GMC Sierra and Chevy Blazer, Equinox, and Silverado. This gives GM customers more choices when shopping for an electric vehicle with the extended incentive.
The Bigger Picture
This workaround demonstrates how automakers are adapting to rapidly changing policy landscapes. While critics argue that removing the tax credit will devastate EV adoption, the reality may be more nuanced. The electric vehicle market has matured significantly, with more models available than ever before and increasing price competition among manufacturers.
Ford and GM’s initiative buys time—both for their businesses and for consumers considering the switch to electric. It also sends a clear message about the automakers’ commitment to their EV strategies despite shifting federal support. Whether other manufacturers will follow suit with similar programs remains to be seen, but for now, Ford and GM customers have a few extra months to take advantage of what was once considered a fleeting opportunity.
For anyone who thought they missed the boat on EV tax credits, it might be worth visiting a Ford or GM dealership after all.