General Motors is offsetting the loss of the electric vehicle tax credit on its vehicles and by offering a big $7,500 discount to customers.
In December, GM said it would temporarily lose eligibility for the credit on some of its EVs. The Chevrolet Bolt is the only EV in GM’s lineup that will be eligible for the entire credit.
However, GM told dealers Jan. 3 it would be providing the equivalent EV tax credit purchase amount on any car now ineligible due to updated guidelines, Detroit Free Press said.
The Cadillac LYRIQ and Chevrolet Blazer EV will likely regain eligibility sometime early this year as GM plans to switch up sourcing so customers can take advantage of the tax credit. Additionally, the Equinox EV, GMC Sierra EV, Cadillac OPTIQ and Silverado EV will be eligible for the full incentive. These cars are set to be built after the sourcing change occurs.
A majority of vehicles that qualified for the credits last year are no longer eligible: 43 vehicles had qualified in 2023, but now, only 19 EVs in the U.S. qualify.
The changes affected the Volkswagen ID.4, Nissan Leaf, a few Tesla Model 3 configurations and the Ford Mustang Mach-E.
There have been other changes to the EV tax credit now that 2024 is here. One of the biggest is the fact the customer can now receive the discount at the point of sale instead of having to file a tax return and wait for the $7,500.
The IRS and U.S. Department of the Treasury announced in early October the credits will be provided when a new or used EV is bought, and waiting for a tax rebate would no longer be necessary.
