- General Motors thought it had found a workaround to continue using the federal government’s $7,500 electric vehicle (EV) discount all year, even though it had ended
- It has now clarified that it will offer the program only this month
You can’t beat the IRS. Not even if you’re a 117-year-old company that anchors one of America’s most important industries.
General Motors has backtracked on a plan to continue using the federal government’s $7,500 electric vehicle (EV) tax credit through the end of the year, even after the program formally ended.
Reuters explains, “GM opted to kill the program after concerns were raised about it by Republican Senator Bernie Moreno of Ohio, a former car dealer who is active in auto policy.” Reuters cites “a person briefed on the matter.”
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GM had come up with a creative plan. The tax credit program allowed buyers of new electric vehicles to claim a tax credit of up to $7,500. It worked only on cars built substantially in North America using supplies from the U.S. or its major trade partners — part of an attempt to build an American EV industry to counter China’s.
Buyers could use the rebate as a down payment.
GM’s financing arm planned to treat itself as the buyer, buying thousands of EVs sitting on dealer lots and claiming the discount as the buyer. The company would then lease them to customers at discounted prices.
The company will now offer its own $7,500 discount, but not for long. Industry publication Automotive News reports, “the automaker plans to offer what it says is an equivalent discount. The offer is good only this month rather than through the end of the year as GM previously had planned.”
