General Motors (GM) has announced plans to offer additional financial incentives for certain electric vehicle (EV) models that will no longer qualify for federal tax credits starting 2024. This move aims to support car dealers in selling these EVs until more GM models become eligible for the tax credits again.
The change affects models like the Cadillac Lyriq and Chevrolet Blazer EV. These vehicles, along with other GM models, are part of 21 EVs that have been rendered ineligible for tax credits due to revised regulations. These regulations clarify the requirements for EV components and critical minerals sourcing, particularly concerning materials from China.
GM stated in a recent communication that specific vehicles, including the Lyriq and Blazer EV, will lose eligibility for the $7,500 purchase incentive from January 1, 2024, because they contain minor components that do not meet the new criteria. However, models like the Chevrolet Bolt EV and Bolt EUV will continue to be eligible for the full consumer purchase credit.
In its letter, GM advised dealers to strategize accordingly. The automaker suggested that dealers could focus on selling the ineligible vehicles to customers who do not qualify for the EV tax credits due to higher income brackets. Additionally, GM recommended offering these vehicles to leasing and commercial customers, as the changes in tax credit eligibility do not impact leasing or commercial purchase incentives.
GM has committed to providing more detailed information to dealers as it becomes available and is taking steps to adapt to the changing landscape of EV incentives and regulations.
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