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GM backtracks on plan to claim last-minute EV tax credits
The GM logo is seen on the facade of the General Motors headquarters in Detroit on March 16, 2021.
Rebecca Cook | Reuters
General Motors is scrapping a program aimed at allowing its dealers to continue offering for several months a $7,500 tax credit on electric-vehicle leases following the Sept. 30 expiration of the federal subsidy, the company said on Wednesday.
Toward the end of last month, GM devised a plan to have its in-house lending arm initiate the purchase of EVs in its dealers’ inventory. The company planned to apply for the federal $7,500 credit on those cars hours ahead of the deadline then roll that money into EV lease terms for customers.
“After further consideration, we have decided not to claim the tax credit,” the company said in a statement to Reuters on Wednesday.
GM opted to kill the program after concerns were raised about it by Republican Senator Bernie Moreno, a former car dealer who is active in auto policy, a person briefed on the matter told Reuters.
The idea behind the program was to ease the impact of the expiration of the tax credit on dealers, who worried that they would be stuck with EVs that would be tough to sell. GM had planned to apply for the credit on tens of thousands of EVs in dealer stocks, according to people familiar with the plan.
Ford rolled out a similar program ahead of the tax credit expiration. It’s unclear if Ford is continuing its program. A spokesperson declined to comment.
