Share to Linkedin Will the $7,500 lease credit still be available when the new Model Y launches in the coming weeks? Credit: Tesla Tesla and General Motors stand to bear the brunt of the elimination of the federal EV tax credit. The EV tax credit plays a critical role for buyers when considering an EV since it amounts to an instant $7,500 discount at time of purchase, while the lease tax credit brings down EV monthly lease payments. Both help to drive sales and leases of popular EVs like the Tesla Model Y — especially with the new model coming to the U.S. in March — and Chevy Equinox EV. Trump didn’t waste any time The “EV Mandate” was top of mind for Trump on Monday during his acceptance speech in the U.S. Capitol Rotunda. “We will revoke the electric vehicle mandate,” he said. (A mantra he repeated when speaking to Davos attendees on Thursday.) This was followed by an executive order that set the stage for “elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs.” $7,500 EV lease credit — ‘we expect to be eliminated’ Tesla and General Motors have the most EV models that qualify for the full $7,500 federal tax credit, according to Fueleconomy.gov. In 2025, GM has five — the Cadillac Lyriq, Cadillac Optiq, Chevrolet Silverado EV, Chevrolet Blazer EV, and Chevrolet Equinox. Tesla has four models and nine variants of the Model Y, Model 3, Cybertruck, and Model X that qualify. The Trump administration is looking to eliminate or alter credits that can be applied directly at the time of the transaction. While the widely-known $7,500 federal tax credit for EV purchases is safe at the moment, the lesser-known lease credit may be the first to go, according to Stephanie Brinley, an analyst at S&P Global Mobility. “We expect the leasing portion will be eliminated; the purchase tax credit may or may not be,” Brinley said in an email. “The purchase credit requires North American assembly, increasing levels of regionally or locally-sourced components and raw materials, and has vehicle pricing and buyer income limits,” she said. “The leasing tax credit has none of those limits; the credit goes to the lending agency, which has so far passed the effect on to the consumer, though the regulation does not specifically say that they must,” Brinley said. MORE FROM