How are GM and Ford preserving the $7,500 EV tax credit?

GM and Ford’s finance divisions will buy eligible EVs and PHEVs, then lease them to customers with the $7,500 credit factored into the lease price.

Which GM and Ford vehicles qualify for the EV lease credit?

Ford’s eligible model is the F-150 Lightning. GM’s lineup includes the Chevy Blazer, Equinox, Silverado EV, GMC Sierra, and Cadillac Lyriq, Optiq, and Vistiq.

When does the EV lease tax credit program end?

The $7,500 lease credit applies to eligible EV and plug-in hybrid models leased through the end of 2025.

Who approves EV tax credits in the U.S.?

The Internal Revenue Service (IRS) regulates and approves EV tax credit eligibility under the Inflation Reduction Act (IRA).

Do other automakers plan to offer similar EV lease programs?

Yes. Several other manufacturers are exploring lease-based credit structures to maintain EV affordability under current tax laws.

GM and Ford Working to Preserve $7,500 EV Tax Credit

Key Highlights

💰 Program: EV lease customers get $7,500 credit through 2025
⚡ Eligibility: Applies to select GM & Ford EVs and PHEVs
🏭 Mechanism: Finance arms buy vehicles, then lease to consumers
📜 Approval: IRS reportedly greenlit the plan in principle
🚗 Models: Eligible include F-150 Lightning, Blazer, Equinox, Silverado EV, Sierra EV, Cadillac Lyriq
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GM and Ford Keep EV Tax Incentives Flowing Through Leasing

Auto industry giants General Motors and Ford Motor Company are working on a way to extend savings to customers when they lease a plug-in hybrid or all-electric vehicle from the car companies through the rest of this year.

According to Reuters, the two automakers are working with their dealers to allow customers to get the $7,500 credit off EVs that are leased. Ford and GM’s finance divisions will purchase plug-in hybrids and electric vehicles that will then be leased by consumers from a list of eligible models.

The idea here is that electric vehicles that are leased from now through the end of 2025 will have $7,500 reduced from the cost of the lease. Cars and trucks have been purchased with a down payment from Ford and GM’s finance departments based on dealer inventory, making them eligible for the tax credit.

Naturally, this short-term fix for the tax credit only applies to certain EVs and PHEVs. As of this writing in October, Ford’s only eligible EV for the program is its F-150 Lightning while GM’s list of possible vehicles includes the Chevy Blazer, Equinox, and Silverado EV truck, its GMC Sierra, and Cadillac Vistiq, Optiq, and Lyriq.

According to the article by Reuters, this plan has been approved in theory by the Internal Revenue Service (IRS) that regulates these EV tax credits. Other major automakers are also making similar plans.

Representatives from Ford and General Motors tell us that the details in the Reuters report are indeed true and accurate. This EV loophole might just work. Stay tuned.