General Motors Adjusts EV Incentive Strategy After Policy Shift

General Motors has pivoted from a $7,500 tax credit scheme to a $6,000 lease support program for electric vehicles, following the expiration of federal subsidies. The automaker's financial arm, GM Financial, will now directly subsidize leases after abandoning a controversial plan to claim credits on dealer inventory.

The original plan, devised in late September, WOULD have allowed GM to purchase unsold EVs from dealers, claim the tax credit, and pass savings to lessees. Approximately 20,000 vehicles were earmarked for this program before political opposition emerged. Republican Senator Bernie Moreno's objections prompted GM to scrap the arrangement entirely.

Payments had already commenced under a straightforward 5%-of-MSRP formula before cancellation. Two Chevrolet Blazer EVs priced around $60,000 each, for instance, would have qualified for substantial combined support. The company declined to elaborate beyond confirming the program's termination in a terse statement to Reuters.