Ford (NYSE:F) and General Motors (NYSE:GM) have rolled out programs for car dealers in recent days, which would effectively extend the use of the $7,500 tax credit for electric vehicle leases beyond the subsidy’s expiration, Reuters reported.
The financing arm of each automaker would initiate the purchase of EVs in the dealers’ inventory by making down payments on them, according to the report, which cited dealers briefed on the programs and documents from the companies.
These down payments would qualify the financing arms for the $7,500 tax credit. Dealers would then offer leases on those EVs to customers for several more months, with the tax credit factored into the lease rate.
The programs aim to soften the impact of the tax credit’s expiration, set for September 30 under President Donald Trump’s tax bill. The subsidy had been in place for over 15 years.
“We worked with our dealers on an extended offer for customers to benefit from the tax credit,” GM (NYSE:GM) told Reuters. Ford (NYSE:F) said it was working to provide its EV customers with competitive lease payments through Ford Credit until December 31.
Ford (F) and GM (GM) reportedly came up with these programs after discussions with Internal Revenue Service officials, according to people familiar with the talks.
The IRS recently noted that EVs bought on or before September 30 will be eligible for the credit. “You can demonstrate acquisition by entering into a binding written contract and making a payment on the vehicle on or before September 30,” it added.