The $7,500 credit on electric vehicles expires today

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Reports suggest Ford and GM are preparing arrangements through their financing arms to effectively extend the $7,500 federal EV tax credit beyond its scheduled September 30, 2025 cutoff
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Under one plan, the automakers would purchase electric vehicles in dealer inventories (making qualifying down payments) so that dealers can continue offering leases with the credit built in
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The move is being framed as a bridge measure to soften a steep drop in EV demand after the credits lapse and preserve momentum in a fragile market
Ford Motor Company and General Motors are reportedly coordinating a financial strategy to maintain the U.S. federal electric vehicle (EV) tax credit, at least in practice, despite its official expiration at the end of today.
Reuters cites people familiar with the matter and internal documents reviewed by industry press who say both automakers are leveraging their captive financing arms to continue making down payments on EVs held in dealer inventory.
Under the plan, those purchases would qualify for the $7,500 tax credit, enabling dealers to roll the subsidy into lease offers to consumers as though the credit were still active.
According to the report, Fords program would extend through December 31, while GM has confirmed coordination with its dealers to maintain incentive-backed leases beyond the September 30 deadline.
How it might work
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The automakers financing arm buys the EV from the dealership via a down payment or similar mechanism, making the purchase eligible for the tax credit.
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The dealership then leases the same vehicle to the end customer, embedding the $7,500 benefit in the lease structure.
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The arrangement hinges on prior consultation with the Internal Revenue Service; sources say both firms have held talks with the IRS to validate the maneuver.
Automotive analysts describe the strategy as a clever workaround less a legislative extension and more a transactional extension intended to shield EV demand from collapsing sharply when the tax credit vanishes.
Why this matters and the risks
The $7,500 tax credit has been a pillar of the U.S. EV market, helping narrow the cost gap between electric and internal combustion vehicles. Its removal is widely expected to dampen consumer demand sharply.
Ford and GM are reportedly racing to blunt that shock. In recent months, both companies have lobbied for more gradual phase-outs of the subsidy and preservation of the leasing loophole that allows automakers finance arms to claim the credit.
Yet the strategy is not without risk. Legal and regulatory scrutiny could challenge whether the transactions genuinely qualify under tax law. If the IRS or Congress disputes the arrangement, the financial risk could be substantial for the automakers and their dealers.
Posted: 2025-09-30 13:19:27