GM Works to Extend EV Tax Credit Through Lease Deals

The federal EV tax credit program officially ends September 30, but GM is working to keep the incentive alive for its customers. Through a coordinated effort with dealers and its financing arm, GM is structuring leases that continue passing along the $7,500 tax credit even after the program sunsets.

The move could preserve affordability for Chevrolet, GMC, and Cadillac EV shoppers into the months ahead.

Lease structures allow tax credit continuation

According to Reuters, GM has been purchasing vehicles through its financing unit before the September 30 deadline, which qualifies the transaction for the $7,500 federal EV tax break. Dealers then make these EVs available for lease, with the credit applied as a down payment. The savings are passed along to lessees, effectively extending the benefit despite the program’s expiration.

The system takes advantage of IRS guidelines distinguishing between a vehicle being “acquired” and “placed in service,” according to GM Authority. If a purchase agreement is signed and the first payment is made before the deadline, the car is considered acquired, even if delivery occurs later. This technicality allows GM to keep offering competitive lease deals on qualifying models like the Chevrolet Blazer EV, Cadillac Lyriq, and GMC Hummer EV.

Automakers seek to maintain EV affordability

GM is not alone in pursuing ways to stretch incentives past the cutoff. Other automakers are exploring similar strategies as affordability remains a critical factor for EV adoption. Leasing has become an important tool in this transition, enabling buyers to access federal incentives even when direct purchase credits are phased out.

For GM, the move could help sustain demand in a challenging market environment, where rising interest rates and competition from rivals like Tesla and Hyundai continue to pressure margins. By leveraging lease structures, GM aims to keep its electric lineup attractive to mainstream buyers, especially those looking for price points below the credit’s eligibility ceiling.

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