GM and Ford Extend $7,500 EV Tax Credit Through Leasing Workaround

The cutoff date for purchasing or leasing a new electric vehicle (EV) to take advantage of the $7,500 EV tax credit was Sept. 30, 2025. But General Motors (GM) and Ford have found a workaround to extend the credit into the fourth quarter. In a nutshell, GM and Ford had their financing arms make down payments on EVs before Oct. 1. According to the IRS, the credit remains available when an EV is “placed in service” after Sept. 30 if a payment was made on or before that date. The payments made by the financing arms fulfill this requirement. Important caveat: Customers must lease the EVs, not purchase them. The customers don’t claim the credit, but their lease payments are reduced to reflect it.