Major U-Turn: Ford Follows GM in Scrapping Plan to Extend $7,500 EV Lease Credit

Ford Motor Company has decided to end a program that enabled its dealerships to transfer the value of the federal electric vehicle (EV) tax credit to customers leasing its cars. The incentive—worth up to $7,500 per vehicle—expired at the end of September 2025.

A Ford spokesperson confirmed in a statement that the company will no longer apply for the federal EV lease credit, explaining that Ford still intends to keep its lease payments competitive despite the program’s conclusion. The move follows a similar step by General Motors, which recently ended its comparable initiative.

The discontinued effort had allowed both automakers to claim the federal credit by taking ownership of EVs held in dealership inventory through their respective finance divisions. The resulting savings were then used to lower monthly lease costs for customers. Other automakers, including Hyundai and Stellantis, instead offered direct discounts to close the price gap left by the expired federal benefit.

General Motors reportedly ended its version of the program after political scrutiny from Ohio Senator Bernie Moreno, a former automotive retailer. Ford has not provided specific details about what prompted its own withdrawal.

For customers purchasing rather than leasing an EV, Ford Credit stated it will continue to offer competitive financing, such as zero-percent interest loans for up to 72 months.

The decision comes as carmakers reassess the health of the U.S. electric vehicle market in the absence of federal incentives. Ford’s CEO, Jim Farley, has previously warned that the loss of government support could slow EV adoption, while leaders at other companies—such as Hyundai Motor North America—have expressed confidence that consumer demand will remain steady.