GM Changes Course on EV Tax Credit Extension for Leases
Key Points
- GM had initiated payments on its own electric vehicles to claim the federal tax credit for lessees, but it has abandoned the incentive.
- GM now says it will provide an equivalent discount from its own pockets.
The federal $7,500 tax credit for EV purchases and leases has ended, but drama surrounding the program is heating up. Having delivered a record number of EVs in the third quarter of 2025 and more than doubled year-to-date sales over the same period in 2024, GM is fighting to maintain that momentum.
Related: Automakers Announce Extension of Tax Credit Discounts for EVs Into Fourth Quarter
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GM, along with Ford, launched programs in which they initiated payments on their own vehicles through their captive finance divisions ahead of the deadline. This exploited a loophole that would allow those divisions to claim the credits and pass on the savings to customers who initiated a lease after the Sept. 30 deadline.
Now, GM has canceled that program. This announcement follows a letter sent to Treasury Secretary Scott Bessent by Senator Bernie Moreno of Ohio. In the letter, Moreno called GM and Ford’s programs a “total violation of Congressional intent by these nefarious actors.” Separately, Moreno told Reuters, “‘The EV subsidies ended Sept. 30, and I’m happy that every car company’ is going to abide by that.”
Instead, according to Automotive News, GM will offer “an equivalent discount,” though that offer will only extend through the end of October rather than the end of 2025 as it had planned under the previous program. This mirrors an offer fellow automaker Stellantis already has in place. Ford has made no statements on this matter as of yet.
Read More EV Incentive News:
- Here Are the Best EV Lease Deals for October
- Here Are the Best EV Finance Deals for October
- How Can You Save on Your EV Purchase?
- IRS Details Loophole Extending Federal EV Tax Credit
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