GM Will Discount Models Not Currently Eligible for $7,500 Tax Credit


gm will discount models not currently eligible for 7 500 tax credit

The EV tax credit rules changed again at the beginning of 2024, and stricter requirements on battery materials sourcing cut several previously qualified models from the list. Most GM models failed to make the cut, at least temporarily, and the automaker is offering $7,500 compensatory discounts to keep sales flowing.

The Detroit Free Press reported that GM will give discounts while awaiting updates to requalify some models. A spokesperson told the publication, “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. 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.”

Currently, GM’s only qualifying models are the Chevrolet Bolt EV and Bolt EUV, which have been discontinued and are selling through the last of their dealer inventories. While the Blazer EV and Cadillac Lyriq are missing out on credits, it’s important to note that Chevy issued a stop-sale for the Blazer to fix software issues, so the credits wouldn’t do much to help its case at the moment.

The stricter battery sourcing rules aim to take some of the wind out of China’s sails in the EV race. The country produces a massive number of raw materials and components, and the federal government wants to bolster North American supply chains as EVs grow in popularity.

[Image: Cadillac]

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