GM Reverses Plan to Claim EV Tax Credit Through Finance Arm

General Motors has abandoned its plan to claim the federal electric vehicle tax credit through its auto finance company, a GM spokesman said Wednesday.

The $7,500 federal tax credit for new EV purchases ended earlier this year. In response, GM announced last month it would use its financing division to claim the credit and pass savings to customers, effectively extending the benefit.

The plan drew criticism from Republican lawmakers, who objected to the workaround.

GM customers will still receive a $7,500 discount on electric vehicle leases that begin by the end of October, but the company will now fund that incentive directly without claiming the federal tax credit.