General Motors
GM will offer $7,500 incentives for its electric vehicles that lost federal tax credit
Several electric vehicles (EVs) have lost eligibility for a $7,500 tax credit starting January 2024 and General Motors is one of them. GM announced on Wednesday that the company will be offering incentives of $7,500 on its electric vehicles.
IRS has recently shuffled the requirements to quality for the $7,500 tax credit and it now restricts battery components resourcing from markets including China. Vehicles with such resourcing will not qualify for this tax credit starting January 1, 2024.
GM informed its dealers that it would provide a similar tax credit amount “for any vehicles that became ineligible due to the new guidelines.”
Last month, GM predicted that its EV models – Cadillac Lyriq and Chevrolet Blazer will lose eligibility for the tax credit in 2024 due to some component resourcing.
However, the automaker suggest that the company would make the required changes to re-qualify for the tax credit for these two models by this year.
Furthermore, GM affirmed that the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac OPITQ will also make some changes in the supply chain and manufacturing to gain full tax credits.
Chevy Blazer EV
According to the announcement, Bolt EUV and Bolt EV 2022-23 electric vehicles qualified for Federal tax credits.
Interstingly, GM’s EVs aren’t the only ones to lose tax credit in 2024. Ford also lost tax credits for E-Transit and Mach-E EVs. While its F-150 EV Lightning pickup truck and Escape Plug-in hybrid made their way to the $3,500 and $7,500 tax credits.
Yesterday, GM published business results for 2023 and it includes 75,000 EV sales throughout the year. This is a 93% increase from the 2022. Also, the company delivered 19,469 battery-powered vehicles in the last quarter with a 20% year-on-year increase.