General Motors has canceled a plan that would have allowed its dealers to keep offering a US$7,500 tax credit on EV leases after the federal subsidy expired on September 30.

The program, set up by GM’s lending arm, aimed to purchase EVs from dealer inventory and apply the tax credit to lease terms through the end of this year.

GM dropped the plan after concerns raised by Senator Bernie Moreno, a Republican from Ohio and former car dealer.

The company said it decided not to claim the tax credit but did not give further reasons.

GM had intended to claim the credit on about 20,000 EVs either on dealer lots or being shipped.

The company will continue to fund incentive lease terms through October.

Ford had a similar program but has not confirmed if it will continue. Industry analysts expect EV sales to drop after the end of the federal subsidy.

🔗 Source: Reuters

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