General Motors will provide shoppers with a $7,500 incentive on all of its electric vehicles that are no longer eligible for the federal EV tax credit.
As of January 1, the Chevrolet Bolt EV and Bolt EUV are the company’s only two models still eligible for the tax credit. While that’s bad news for consumers, the carmaker has told the Detroit Free Press that it will offer a $7,500 discount on its other EVs until it can make the necessary sourcing changes to make them eligible for the tax credit.
Changes made mean that EVs with battery components made or assembled by a company based in a ‘foreign entity of concern,’ like China, North Korea, Russia, and Iran are not eligible for any part of the federal tax credit. Those that are eligible must have batteries that have at least 50% of their components sourced from the U.S., Mexico, or Canada and the raw materials of their batteries must also be sourced from a country the U.S. has a free trade agreement with. Vehicles that do not fulfill this requirement can only receive a $3,750 credit.
The two GM products that had been eligible for the $7,500 tax credit last year which are no longer eligible are the Chevrolet Blazer EV and Cadillac Lyriq. However, GM spokeswoman Liz Winter has confirmed the carmaker is making a sourcing change that will make them eligible again.
Read: IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024
“The Cadillac Lyriq and Chevrolet Blazer EV will temporarily lose eligibility for the clean vehicle credit on Jan. 1, 2024 because of two minor components,” she told the Detroit Free Press. “While we await final rules, GM has pulled ahead sourcing plans for qualifying components in early 2024 and will advocate for our dealers and customers who purchase vehicles built ahead of the new guidance.”
