- Ford and GM have found a loophole to extend the EV tax credit.
- They made down payments on EVs, effectively stopping the clock.
- This means customers will get the incentive while supplies last.
The clean vehicle tax credit expires today, but Ford and General Motors have found a loophole that will enable them to offer the incentive for a little longer. This is a brilliant move as it will save shoppers thousands of dollars, while also enabling the automakers to offer discounts that rivals can’t.
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More: IRS Quietly Extends EV Tax Credit Deadline But There’s A Catch
As we reported in August, the IRS issued new guidance related to the elimination of the tax credit. It effectively said the credit could be extended to vehicles received after September 30 as long as there was a “written binding contract” as well as a nominal payment made.
A Timely Loophole
The automakers appear to have taken advantage of this as the Detroit Free Press reports Ford and GM decided to use their financing companies to place down payments on EVs. This secured the tax credit and effectively stopped the clock.
Thanks to the clever accounting, the companies will continue offering vehicles with the incentive. The specifics are a little hazy, but the publication said “When a customer leases an EV through the program, their payment reflects application of the tax credit and the finance company gets reimbursed.”
What It Means for Buyers
Of course, the specifics don’t really matter to shoppers as long as they get their $7,500 credit. A GM spokesperson alluded to this as they told the paper, “It’s business as usual for the customer” and “They can walk in on Oct. 1 or Oct. 31 and lease an EV and get the benefit of the credit if the dealer is participating in the program and still has inventory.”
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#Ford #Clever #Loophole #Tax #Credit #Alive
