Key Takeaways
- Ford and GM have both dropped plans to use leasing programs to extend access to the expired $7,500 federal EV tax credit.
- The decision followed internal reviews and public scrutiny over whether such leasing structures aligned with the credit’s official expiration.
- The rollback highlights how rapidly shifting federal policy continues to influence automaker strategy and consumer pricing models.
- The move underscores automakers’ shifting strategies in an EV market now operating without federal consumer subsidies.
Ford Motor Company and General Motors have both reversed course on plans to use leasing structures to continue offering customers the now-expired federal electric vehicle (EV) tax credit. The decision follows the official sunset of the $7,500 incentive on September 30, 2025, and marks a significant shift in how automakers may approach EV pricing and affordability going forward.
Both companies had initially explored using their in-house financing arms to capture the credit through leases, which would have allowed them to indirectly pass savings on to customers. However, in statements shared with Reuters, GM confirmed that “after further consideration, we have decided not to claim the tax credit,” while Ford stated that it “will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today.”
The reversal comes amid heightened political and regulatory uncertainty surrounding federal EV incentives. Earlier in the week, GM had told outlets it was reviewing its approach before ultimately deciding to abandon the plan. The Verge reported that both automakers’ leasing workaround had attracted scrutiny for appearing to sidestep the official expiration of the credit, prompting each company to pull back before implementation.
Industry analysts suggest that this move could reshape short-term EV sales strategies. Without the federal subsidy, manufacturers may rely more heavily on direct price adjustments, dealer incentives, or regional rebate programs to sustain consumer interest. The rollback also comes as other automakers, including GM with its newly relaunched, sub-$30,000 Chevrolet Bolt EV, position affordability as a key differentiator in the post-credit market.
While no formal press releases were issued by either company, the coordinated timing of their announcements suggests both are responding to similar market and policy pressures. The broader implications will likely unfold as the industry recalibrates EV pricing, leasing, and production strategies without the buffer of a federal consumer incentive.
