So much for Ford and GM’s plan to expand the EV tax credit

Last week, it was revealed that automakers were working with their dealer networks on short-term programs that would allow customers to continue getting the tax credit on leased EVs through the rest of the year. With the tax credit expiring on September 30Ford and GM were hoping to continue offering the discount to customers for a short period in order to boost electric vehicle sales.

While automakers, including Hyundai and Stellantis, have offered cash incentives to plug the gap for buyers, Ford and General Motors have taken a different approach. They sought to purchase EVs from their own dealers by requiring their finance departments to make payments on all electric models in their inventory before the tax credit expired. Dealers then lease the vehicles to customers with a $7,500 discount included in the price.

But now that plan is essentially moot. Reuters says General Motors withdrew first on Wednesday, followed by Ford. GM chose to end the plan after Republican Senators Bernie Moreno (R-Ohio) and John Barrasso (R-Wyoming) chose to end the plan. The plan was reported to the Treasury DepartmentHe called it a “loophole” and “a complete violation of Congress’ intent by these nefarious actors.” However, Ford and GM have clarified their plan with the Internal Revenue Service, according to Reuters.

Automakers had hoped to cushion the blow on car shoppers and maintain the momentum many dealers have seen in recent weeks. Electric vehicle sales rose in July and August as shoppers rushed to claim the credit before it expires on September 30. Experts predict that after the credit expires, electric vehicle sales are likely to decline.