Ford & GM Jump On Loophole To Use $7,500 EV Tax Credit Through End Of 2025 - CleanTechnica

The article discusses a significant development regarding the US electric vehicle (EV) tax credit, which offers up to $7,500 for new EV buyers but was set to expire after September 30, 2023. The IRS clarified that buyers who have a “binding written contract” and make an initial payment by that date remain eligible for the credit, effectively extending its benefits. Ford and General Motors (GM) have leveraged a loophole by purchasing vehicles themselves, separate from their dealer networks, allowing dealers to offer EV leases at reduced prices using the tax credit. This arrangement enables consumers to access attractive lease deals through the end of 2025, potentially accelerating EV adoption by introducing more drivers to electric cars via short-term leases that quickly feed into the used EV market. The article notes that while this loophole benefits Ford and GM, it is unclear if other automakers like Hyundai, Kia, Volkswagen, Volvo, Honda, or Toyota have found similar ways to capitalize on the tax credit extension. Tesla,