- The Blazer EV, Silverado EV, and Cadillac Lyriq lost tax incentive eligibility due to battery components sourced from foreign countries of concern, affecting GM EV discounts.
- The new tax incentive requirements are pushing EV manufacturers from batteries manufactured in China, North Korea, Russia, and Iran.
- GM is changing its battery sourcing, so many ineligible EVs should become eligible later this year.
As the number of EVs qualifying for 2024 Inflation Reduction Act tax incentives drops, General Motors (GM) instructs dealerships to provide EV discounts for all electric vehicle models. This price drop comes in contrast to EV price changes from Ford and other automakers.
Fewer EVs Qualify for Point-of-Sale Tax Incentives
According to the IRA, the number of 2024 EVs qualifying for tax incentives dropped significantly compared to 2023 models. In 2023, 43 vehicles earned tax incentives. Currently, 19 vehicles qualify for GM EV discounts and tax incentives. Many EVs lost their tax incentive status thanks to new battery sourcing requirements. Shoppers who choose these vehicles will receive the tax credit at the point of sale.
In 2022 and 2023, tax credits were given to EVs assembled in the United States. Electric vehicles sold in 2024 will not qualify for tax incentives if the battery components are manufactured or assembled in a foreign country of concern. Therefore, if electric vehicles have battery components made in China, the EV will not qualify for tax incentives. Other foreign entities of concern include Russia, North Korea, and Iran.
GM Giving Discounts Expecting New Battery Sourcing
The changes affected many EVs from legacy automakers like General Motors, Ford, Nissan, and Volkswagen. General Motors is taking steps to change its battery sourcing, and the automaker has created a stop-gap to keep incentivizing drivers to purchase the Chevy Blazer EV and Cadillac Lyriq.
In lieu of the current ineligibility, the automaker is giving drivers a $7,500 discount at the point of purchase. GM will provide dealerships with the EV tax credit “for any vehicles that became ineligible due to the new guidelines.” GM is confident the Blazer EV and Lyriq will regain eligibility after the automaker weans itself from Chinese batteries.
Tax Incentives on Upcoming 2024 General Motors EVs
General Motors expects the upcoming 2024 EVs like the Chevrolet Equinox EV, Silverado EV, GMC Sierra EV, and Cadillac Optiq will also qualify for the GM EV discounts and tax incentive when they arrive on dealership lots. The battery sourcing change should give these vehicles the full $7,500 tax credit. The Chevrolet Bolt has retained its tax incentive eligibility.
IMAGES: CHEVROLET, GMC, CADILLAC, NEIL TJIN
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