General Motors is discontinuing a program that allowed dealers to continue offering the $7,500 tax credit on new Chevy, GMC, and Cadillac electric vehicles for months after the federal subsidy expired on September 30. In its place, the company is rolling out a different strategy to maintain customer savings, the company said on Wednesday.
According to Bloomberg, GM has opted not to prolong the tax credit for electric vehicles. Instead, GM will temporarily contribute around $6,000 of its own funds to help sustain electric vehicle lease incentives. A company spokesperson confirmed that “GM worked on an extended offer for the benefit of our customers and dealers,” adding, “After further consideration, we have decided not to claim the tax credit.”
The savings will continue through the end of the month. “GM will fund the incentive lease terms through the end of October,” the spokesperson said.
Last week, GM and Ford introduced programs allowing customers to purchase EVs through their financing arms, making the vehicles eligible for the $7,500 tax credit. The automakers planned to apply the credit to leases by using the funds from these purchases.
As reported by Reuters, citing a familiar source, GM chose to discontinue the program after Republican Senator Bernie Moren called for closing the loophole that allowed the $7,500 tax credit to be transferred through leasing.
The program was designed to mitigate the impact of the tax credit’s expiration on dealers, who were concerned about being left with electric vehicles that would be difficult to sell. Sources familiar with the plan said GM aimed to claim the credit on tens of thousands of EVs already in dealer inventory.
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