GM withdraws plan to extend EV tax credits after policy scrutiny – report

Core Insights - General Motors (GM) has decided to reverse its plan to allow dealers to offer a $7,500 tax credit on electric vehicle (EV) leases following the expiration of the federal subsidy on September 30 [1][2] - The decision was influenced by concerns from Ohio's Republican Senator Bernie Moreno, who is involved in automotive policy discussions [1][3] Group 1 - GM initially proposed a plan where GM Financial would purchase EVs from dealer inventories to qualify for the federal tax credit, which would be included in lease agreements for customers [2] - The company intended to claim the tax credit on approximately 20,000 EVs that were either in dealership lots or on their way to stores, with down payments made by GM Financial calculated at 5% of each vehicle's maximum price [4] - The plan was quickly assembled just days before the tax credit was set to expire, with details communicated to dealers on September 29 [5] Group 2 - Senator Moreno expressed satisfaction with GM's decision to scrap the EV tax-credit plan and indicated a desire to collaborate with GM on policies to protect the domestic auto industry [3] - The original program aimed to alleviate concerns from dealers about selling EVs without the incentive following the tax credit's expiration [3]