The $7,500 federal tax credit for electric vehicles, available in one form or another since 2008, has officially expired. With the passage of the One Big Beautiful Bill Act and the President’s signature in the summer of 2025, federal support for EV adoption ended on September 30, 2025. Automakers are understandably worried about a potential sales slump, but General Motors and Ford may have found a perfectly legal way to keep the incentive alive until the end of the year.
The IRS (Internal Revenue Service) clarified that as long as a down payment was made before the September 30 deadline, buyers would still qualify for the $7,500 credit, even if the vehicle itself was delivered later. Seizing this opportunity, Ford is using its in-house finance arms to “reserve” EVs with small deposits, locking in the incentive and then passing it on to customers through leasing programs. Ford told it will extend this offer until December 31, 2025, provided customers finance their EVs through Ford Credit.
While most analysts expect EV sales to dip sharply without the tax break, this clever loophole could soften the blow. Other automakers, however, will have to fend for themselves in a post-incentive landscape, whether by slashing prices or restructuring their product strategies.
The fact that giants like GM and Ford are going to such lengths to preserve the credit underscores how valuable it was for both manufacturers and buyers. Still, with the law officially repealed, the industry is now working overtime to make the transition as smooth as possible.
The big question is: will Americans still buy EVs without the federal tax credit? Chances are yes. Many models never qualified for it in the first place yet remained popular. Leasing has also long offered a workaround, keeping monthly payments attractive. Moving forward, automakers are expected to double down on aggressive pricing.
