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Ford and GM Cancel EV Tax Credit Amid Pressure

10/11/2025

35 8 Full Breakdown

Summary

Story summary

Ford Motor Company canceled its plan to extend the $7,500 federal EV tax credit for leases, with GM following.
Both automakers had planned to deliver the credit via financing arms through dealer purchases but faced political pressure.
Ford said it will not claim the credit while maintaining competitive lease payments.
The credit expired on September 30.
Analysts predict major impacts on pricing and affordability.

History

Historical Context

The U.S. government introduced a $7,500 federal tax credit for electric vehicles (EVs) in 2010 to boost adoption, significantly impacting sales of models like the Nissan Leaf and Chevrolet Volt. However, by 2023, political pressures led Ford and GM to cancel plans to extend this credit for leases, marking a pivotal shift in the EV market as the credit expired on September 30, 2023.

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Story summary

Ford Motor Company canceled its plan to extend the $7,500 federal EV tax credit for leases, with GM following.
Both automakers had planned to deliver the credit via financing arms through dealer purchases but faced political pressure.
Ford said it will not claim the credit while maintaining competitive lease payments.
The credit expired on September 30.
Analysts predict major impacts on pricing and affordability.

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