GM to provide $7,500 incentive for EVs that lost tax credit eligibility

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Dive Brief:

  • General Motors will provide up to $7,500 in additional financial incentives for electric vehicles that became ineligible for federal clean energy vehicle tax credits in 2024, GM said last month in a letter to dealers, which was shared with Automotive Dive.
  • The Chevrolet Bolt EV and Bolt EUV remain eligible for the tax credits. GM expects the Cadillac Lyriq and Optiq; Chevrolet Blazer EV, Equinox EV and Silverado EV; and GMC Sierra EV to become eligible in early 2024 after the automaker implements changes to its supply chain.
  • The move aims to help GM dealers sell EVs until more of its models are eligible for federal clean energy vehicle tax credits.

Dive Insight:

The Cadillac Lyriq, Chevrolet Blazer EV and other GM models were among 21 EVs to become ineligible for EV tax credits in 2024 following regulatory changes that aim to support U.S. manufacturing and reduce U.S. dependence on China for EV components and critical minerals.

“GM is well positioned to quickly adjust to these new rules, and we anticipate qualification of GM EVs for most of 2024,” the automaker wrote. “GM is rapidly adjusting in response to these new rules and will provide further information as soon as possible.”

In the letter, GM recommended that dealers “preserve eligible inventory for eligible customers” by selling ineligible vehicles to customers who do not qualify for EV tax credits because their incomes are too high. 

The automaker also recommended that dealers offer ineligible vehicles to leasing and commercial customers since the tax credit changes do not affect leasing or commercial purchase incentives.

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