Ford Motor Co. and General Motors have developed a method through the IRS guidance to extend use of the electric vehicle tax credits, at least for leases, into the fourth quarter.
The Detroit automakers used their financing arms, called captive finance companies, to make down payments on EVs before finding customers, a move that allows those vehicles to qualify for the incentives beyond the Sept. 30 expiration.
Ford and GM spokespeople confirmed the programs to the Detroit Free Press.
Tax credit eligibility applies to retail leases only, according to documents outlining Ford’s program obtained by the Detroit Free Press. Electric vehicle purchases and fleet vehicles do not apply.
Ford and General Motors are racing to sign up car dealers for programs that would effectively extend the use of a $7,500 U.S. tax credit on leases of electric vehicles beyond the Tuesday expiration of the federal subsidy, according to dealers and documents.
Each company in recent days has rolled out programs to their retailers under which the automaker’s financing arm would initiate the purchase of EVs in dealers’ inventory by making down payments on them, according to dealers briefed on the previously unreported programs and documents from the companies.
Those down payments will qualify the lending arms for the federal $7,500 tax credit on those vehicles, according to the documents and dealers. From there, dealers would offer leases on those cars to retail customers as usual for several more months, with the $7,500 subsidy factored into the lease rate.
The programs are aimed at softening the impact of the disappearance of the tax credit, which has been in place for more than 15 years to encourage EV adoption.
Continue reading “Ford, GM will Extend $7500 Credit on EVs. Hearing China’s Footsteps..”