GM Reportedly Scraps Plan To Continue Offering EV Tax Credits

General Motors (GM) is reportedly scrapping a program aimed at allowing dealers to continue offering $7,500 tax credit on EV leases despite the expiry of the federal incentive on September 30.

Reuters reported on Wednesday that the automaker devised a scheme towards the end of September under which its in-house lending arm, called GM Financial, would initiate the purchase of EVs in its dealers’ inventory. The automaker planned to apply for the federal tax credit on those cars. This money would then be rolled into EV lease terms for customers through the end of the year under the plan.

The company was planning to claim credit on roughly 20,000 EVs on dealership lots or en route to stores under the plan, the report said.

However, GM has now opted to kill the plan and decided not to claim the tax credit, a spokesperson told Reuters. As per the report, the decision was influenced by Republican Senator Bernie Moreno of Ohio, who raised concerns about the scheme.

Federal tax credit of $7,500 on the purchase of new EVs expired on Sept. 30, raising prices for end customers and creating concerns about EV demand in the fourth quarter.

Reuters on Wednesday noted that it is unaware if Ford is continuing a similar program it devised while nearing tax credit expiration.

GM shares traded 1% lower at the time of writing. On Stocktwits, retail sentiment around GM rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.

GM stock is up by 7% this year and by about 23% over the past 12 months.

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