Ford and GM Eliminate EV Loophole Following Accusations of Exploiting Taxpayer Funds | Carscoops

      Under pressure from a Republican Senator, Ford and GM have decided to change their plans.

      This decision comes after the Senator accused them of “bilking” taxpayers.

      The automakers are now introducing their own incentives to boost demand.

      In a landscape where many corporations align themselves with the Trump Administration, Ford and GM took a different approach. They openly utilized a loophole to extend the clean vehicle tax credit beyond its expiration date of September 30.

      The background is extensive; earlier this year, the IRS issued guidance indicating that the credit could be available for vehicles received after September 30, as long as there was a “written binding contract” and a nominal down payment.

      Exploiting the System

      To benefit from this, Ford and GM leveraged their financing divisions to make down payments on electric vehicles, effectively pausing the timeline. This allowed them to lease the vehicles to consumers at reduced rates.

      Unsurprisingly, this raised concerns, and Ohio Senator Bernie Moreno expressed his discontent. In a letter to Treasury Secretary Scott Bessent, he claimed that the IRS guidance was being exploited by some car manufacturers looking to continue “bilking the U.S. taxpayer.”

      He further remarked that they were “gaming this guidance by instructing their affiliated financial entities to enter into written binding agreements with dealers for electric vehicles, making a nominal down payment to secure the credits on vehicles that may not reach the end user for months.”

      Moreno also referred to the situation as the “Green New Scam,” indicating his sentiments towards electric vehicles. In any case, it seems that GM and Ford have concluded that the negative perception and pressure were not worth pursuing this strategy.

      Retreating

      GM was the first to back down, quickly followed by Ford. A spokesperson informed Reuters that “Ford will not claim the EV tax credit, but will maintain the competitive lease payments we have in the market today.”

      On that note, Ford is advertising a lease for the 2025 Mustang Mach-E Select at $253 per month for 36 months, with $3,493 due at signing and an annual mileage allowance of 10,500 miles (16,898 km). There are, of course, several conditions attached.