GM Launches New Incentives to Cover Expired $7,500 EV Tax Credit

Above: 2025 Cadillac LYRIQ all-electric SUV

General Motors abandoned a controversial plan to capture the $7,500 federal EV tax credit beyond its September 30 expiration date, choosing instead to fund its own incentives.

Late last month, GM used its finance arm to make down payments on all unsold EVs, positioning GM Financial to claim the tax credit after the deadline and later pass on the savings to lessees. After facing political scrutiny, GM will no longer pursue that approach.

New EV Lease Incentives through October 31, 2025

Instead, GM will fund its own equivalent incentives through October. The incentives apply only to in-stock EVs and are designed to help dealers move unsold inventory following the tax credit expiration.

GM Financial will provide residual value support that lower lease payments by about $290 per month. That support is available on vehicles such as:

With the federal EV tax credit gone, GM’s new incentives gives lessees another window to capture strong EV deals. The clock is ticking, however. GM Financial has pledged to fund and extend the new incentives only through October 31, 2025.

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