Ford and GM find loophole to offer $7,500 EV tax credit beyond September

In a bid to help new electric car buyers, Ford and General Motors have found a loophole in the $7,500 EV tax credit grants to extend the offer beyond its September deadline.

In the words of Ford CEO Jim Farley himself, EVs are ‘interesting’, ‘fast’, and ‘efficient’.

But brand-new vehicles are ‘expensive’, and those who are looking to secure their first EV have just had a $7,500 rug pulled from beneath their feet.

That is, unless you’re a customer for Ford and General Motors.

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Ford and General Motors reveal plans to subsidise $7,500 EV tax credit

The Federal EV tax credit was the safety net that America’s EV industry depended on, making brand-new cars like General Motors’ Chevrolet Silverado much more affordable.

But that line of credit was all used up as of the end of September, and as October’s spooky season begins, the prices are getting scarier.

However, Ford and General Motors have told Reuters that they both are extending the tax credit until the end of the year, at least, off their own backs.

“We worked with our GM dealers on an extended offer for customers to benefit from the tax credit for leases,” a GM spokesperson told the agency.

The report claims that other manufacturers may follow suit, but it’s uncertain which carmakers can afford it.

All of this follows President Trump’s massive bill, signed in July, putting an end to this tax credit that had been in place for 15 years.

Jim Farley explains why it’s needed

Speaking separately, at a Ford Pro Accelerate summit, Jim Farley claimed that the change in policy would make a huge impact on how many EVs are sold in America.

In fact, it’s a total ‘game-changer’ and predicted up to a 12 percent drop in sales post-September 30. A late surge in 2025 saw people get in before it was too late, which could make that 12 percent an even bigger sum.

So why is Ford shelling out its own line of tax credit worth up to $7,500?

“Customers are not interested in a $75,000 electric vehicle,” Farley said.

“They find them interesting. They’re fast. They’re efficient. You don’t go to the gas station. But they’re expensive.”

So, Ford is extending the olive branch ahead of the release of its new cars, like the newly announced EV pickup and the current hotshot Mustang GTD.

The end of the EV tax credit will only spark fear into American brands, who are already expecting the affordable Chinese market to erupt into the US soon.

On the flipside, the UK announced a $5,000 grant for EVs earlier in the year.

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