- GM killed its EV lease tax credit incentives after a single Republican senator raised concerns
- The Senator told Reuters he was happy to help “protect our domestic auto industry”
- The federal EV tax credit was suspended on September 30, 2025
General Motors had a program in place that would have effectively extended federal EV tax incentives following their suspension on September 30 by the Trump Administration. The company would apply for the tax credit on cars it had bought out of dealer inventories. Then, GM would roll that money into EV leases for customers through the end of 2025. Then, Republican Senator Bernie Moreno told GM not to, and it listened.
GM Caves To Political Pressure
Per a Reutersreport, GM killed this program after Republican Senator Bernie Moreno (pictured above with other party figures) raised concerns over the program. GM issued a statement to the outlet, saying it would not claim the tax credit on applicable vehicles. “After further consideration, we have decided not to claim the tax credit.”
Moreno also stated in an interview that the decision pleased him: “The EV subsidies ended September 30 and I’m happy that every car company” is going to abide by that. “I look forward to working with GM,” he said. “We’re putting a lot of policies in place to protect our domestic auto industry.”
GM’s Quick Thinking Could Have Saved Buyers Money
Chevrolet
GM rolled out the program shortly after getting wind of the plan at Ford, which, as of publishing, has not reneged on its plan to extend the credit to customers via the same trick: putting a down payment on dealer vehicles to qualify for the credit before leasing them back to consumers at a discounted rate. General Motors dealers raised concerns they would be left with tough-to-sell EVs as the credit expired, says a source, which also pushed GM to apply for the credits for existing inventory. Buyers do still have a little time, and GM did say it would extend “the incentive lease terms” through the end of October. The automaker may have already made down payments on some inventory ahead of Moreno’s request.
As the subsidy closed out last month, EV sales soared as buyers rushed to score on incentives before they expired. Meanwhile, GM just rolled out its new budget EV, the 2027 Bolt, which starts under $30,000. The EV was popular enough for GM to update the model and continue production, but demand for EVs has waned among consumers as many move towards hybrids and gasoline vehicles. Automakers have stepped back, too, with several pushing back transitions to electric-only lineups.
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