New rules that took effect on January 1 dramatically shrunk the list of EVs eligible for federal tax credits.
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The federal government’s new rules are meant to promote the American industry and state that EVs with battery components made or assembled by companies based in ‘foreign entities of concern,’ such as China, North Korea, Russia, and Iran would be rendered ineligible for the federal tax credit.
Detroit Big Three manufacturer General Motors (GM) – Get Free Report took a major hit during the new year. The carmaker’s only models eligible for the tax credit are the outgoing Chevrolet Bolt EV and Bolt EUV compact electric cars, leaving consumers paying the ante if they want anything else.
General Motors said in a statement to its dealers that it will provide shoppers with a $7,500 incentive for any vehicles rendered “ineligible due to the new guidelines.”
the 2023 Cadillac LYRIQ
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According to IRS data, GM’s Chevrolet Blazer EV and Cadillac Lyriq were previously eligible for the $7,500 tax credit. If said vehicles were still eligible, the new rules that took effect on January 1 would’ve allowed buyers to apply the tax credit as an immediate discount on the aforementioned cars at the dealership.
In a statement to the Detroit Free Press, a GM spokesperson said that GM is working to get these vehicles back on the list again.
“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,” they said. “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.”
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