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Ford and General Motors have reportedly backtracked on plans to utilize a loophole in the now-expired federal tax credit program to offer a $7,500 discount on EV leases.
Requirements to use the EV tax credit for new vehicles were limited to select models. But many consumers were able to extend it to more vehicles via a leasing loophole that classified these cars as a commercial purchase. The automakers were looking to use that loophole to continue the program after the Big Beautiful Bill killed the federal tax credit, effective Sept. 30.
As Reuters explains, the companies’ lending arms would buy EVs from dealers’ inventories, apply for the $7,500 credit, and then apply that money to a customer’s lease term.
However, Republican Senators Bernie Moreno (Ohio), a former car dealership owner, and John Barrasso (Wyo.) wrote to Treasury Secretary Scott Bessent to request that he close the loophole, calling its use a “total violation of Congressional intent by these nefarious actors.”
Days later, GM backtracked on plans to use the loophole, though it will offer the $7,500 discount until the end of October without claiming the credit, The Wall Street Journal reports. This week, Ford also told Reuters it would “not claim the EV tax credit but will maintain the competitive lease payments we have in the market today.”
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EV sales spiked in August, likely due to people wanting to get the tax credit before it expired. That came after North America fell far behind China and Europe in terms of EV adoption in the first part of 2025. According to UK market research firm Rho Motion, worldwide EV sales jumped 21% between July 2024 and July 2025, topping 10.7 million in the first seven months of the year. In North America, sales were comparatively meager, rising just 1.0 million, a 2% increase.
In August, Ford announced its “Universal EV” project, which includes a midsized electric pickup truck that Ford plans to ship in 2027 at a price starting at roughly $30,000. Earlier this week, meanwhile, GM revealed the 2027 Chevrolet Bolt, which will be available in January 2026, starting at $28,595, making it the most affordable EV in the US.
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I’m a reporter covering weekend news. Before joining PCMag in 2024, I picked up bylines in BBC News, The Guardian, The Times of London, The Daily Beast, Vice, Slate, Fast Company, The Evening Standard, The i, TechRadar, and Decrypt Media.
I’ve been a PC gamer since you had to install games from multiple CD-ROMs by hand. As a reporter, I’m passionate about the intersection of tech and human lives. I’ve covered everything from crypto scandals to the art world, as well as conspiracy theories, UK politics, and Russia and foreign affairs.
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