Ford and General Motors have found a clever way to preserve tax breaks for electric vehicles (3 photos)
Automakers Find Way to Extend Electric Vehicle Tax Credit
The Clean Vehicle Tax Credit formally expires today, but Ford and General Motors have found a legal loophole that will allow them to offer the credit for a while longer. It’s a smart move, as it will save customers thousands of dollars while also allowing automakers to offer discounts that their competitors can’t.
How the extension works
As reported back in August, the IRS has released new guidance on the credit’s elimination. They provide that the benefit can be extended to vehicles acquired after September 30, provided that a “written binding agreement” is concluded and a symbolic payment is made.
The auto giants’ strategy
Manufacturers seem to have taken advantage of this opportunity. Ford and GM decided to involve their finance companies in making the first payments for electric vehicles. This fixed the right to the tax credit and, in effect, stopped the countdown to using it. 
Implications for customers
Thanks to this approach, companies will continue to offer cars with a benefit. The details of the mechanism are a bit unclear, but sources say that when a customer leases an electric vehicle through the program, the customer’s payment already takes into account the application of the tax credit, and the finance company receives compensation.
A GM representative said: “It’s business as usual for the customer. They can come into the showroom on October 1 or October 31, lease an electric vehicle and get the credit benefits, if the dealer participates in the program and still has inventory.” 
The situation demonstrates how large corporations can adapt to changes in legislation by finding alternative ways to support sales. Such actions often raise debates about fairness, but for consumers they temporarily preserve financial benefits. It can be expected that other manufacturers will also try to use similar approaches until the state makes adjustments to the rules.
