Ford is no longer planning to offer a program that would extend the $7,500 EV tax credit for at least another few months. The company said it will continue offering competitive lease payments.
Ford ends $7,500 EV tax credit program for leases
Just a day after GM suddenly ended plans for a program to extend the $7,500 EV tax credit for leases, Ford announced it will also end the offer.
“Ford will not claim the EV tax credit,” a company spokesperson confirmed with Reuters on Thursday. However, don’t expect all the savings to disappear. At least, not yet. The spokesperson added Ford will still offer the “competitive lease payments we have in the market today.”
The move comes after crosstown rival GM announced a similar decision on Wednesday. Last week, Reuters reported that Ford and GM were planning to launch programs to extend the $7,500 tax credit for EV leases.
The program involved purchasing EVs from dealer inventories through their financing divisions, enabling them to become eligible for the credit.
Ford and GM would then use the funds to continue offering the $7,500 credit for those leasing an EV. The programs were expected to run at least a few months after the September 30 deadline.
The company spokesperson said Ford Credit is still offering 0% APR financing for 72 months, along with other incentives, for electric vehicle buyers.
A source close to the matter told Reuters that GM scrapped the program after Republican Senator Bernie Moreno called to close a loophole that enabled the credit to be passed on through leasing.
“GM worked on an extended offer for the benefit of our customers and dealers,” a company spokesperson said, adding, “After further consideration, we have decided not to claim the tax credit.” The company will provide about $6,000 of its own cash instead to continue supporting EV leases. GM will also continue to fund the incentive lease terms until the end of October.
Several automakers are promising to keep the savings going with incentives of their own, including Hyundai, BMW, and Stellantis.
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