Ford and General Motors rush to register car dealers in programs that effectively extend the use of an US $ 7,500 tax credit in leases of electric vehicles beyond the expiration date of the federal subsidy on Tuesday, according to concessionaires and documents.
Each company, in recent days, has implemented programs for its distributors under which the Automotive Financing Unit would initiate the purchase of electric vehicles in the inventory of the concessionaires making initial payments on them, according to informed dealers on these programs so far not reported – and companies of the companies.
These initial payments will qualify the financing subsidiaries to obtain the federal credit of $ 7,500 in those vehicles, according to documents and concessionaires. From there, the dealers will offer leases of these cars to retail customers as usual for several more months, with the subsidy of $ 7,500 incorporated into the lease.
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The programs are intended to soften the impact of the disappearance of the tax credit, which has been in force for more than 15 years to promote the adoption of electric vehicles.
“We work with our GM dealers in an extended offer so that customers benefit from the tax credit in the leases” of electric vehicles, GM said in a statement to Reuters on Monday. A Ford spokesman did not comment immediately.
Concessionaires, automotive executives and analysts have predicted that sales and leases of electric vehicles would collapse after the expiration of the fiscal credit on Tuesday, after a purchase wave in recent months by customers who sought to advance to the deadline.
The broad fiscal package of US President Donald Trump, signed in July, established on September 30 as the end of the subsidy.
It was not clear if other car manufacturers were applying similar tactics to extend the period during which they could take advantage of the tax credit to sell their electric vehicles.
Ford and GM devised their programs after conversations with officials of the Internal Revenue Service (IRS), according to three people familiar with these conversations. An IRS spokesman did not immediately respond to a request for comments.
In August, IRS said vehicles had to be bought before September 30 to qualify for fiscal credit of $ 7,500.
“The acquisition can be demonstrated by signing a binding written contract and making a payment for the vehicle on or before September 30,” said the agency.
With Reuters information
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