General Motors has announced that its newly launched Chevrolet Blazer EV and Cadillac Lyriq models will likely forfeit their eligibility for the electric vehicle tax incentive starting from January 1, as they have already exceeded the threshold of 200,000 units sold in the United States. Pursuant to General Manager guidelines, the temporary disqualification is necessitated by minor component defects.
By 2024, two GM electric vehicles – the Chevrolet Blazer EV and Cadillac Lyriq – are set to become ineligible for federal tax credits.
General Motors attributed a temporary hiccup to “two minor components.” According to Reuters, the company has already laid out plans to commence providing essential parts from early next year.
Notwithstanding any potential loss, General Motors (GM) has clarified that all electric vehicles (EVs) below the value cap will still meet the eligibility criteria. The automaker anticipates its Blazer EV and Lyriq models will requalify for electric vehicle tax credits in early 2024, although exact details have not been disclosed.
Although production of the current Chevrolet Bolt EV is winding down, General Motors has announced that the single model eligible for the IRS tax credit starting January 1 will be this electric vehicle.
As General Motors’ various electric vehicles, including the GMC Hummer EV, breach the $80,000 threshold for the federal EV tax credit? The 2024 GMC Hummer electric pickup and SUV are expected to start at a minimum price of $96,550.
The forthcoming electric vehicles, including the Chevrolet Equinox, Silverado EV, GMC Sierra, and Cadillac Optiq, built following the supplier change, are expected to qualify for the full $7,500 federal tax credit.
Several automakers have issued connected advisories. Ford notified dealers that it anticipates its Mustang Mach-E electric vehicle will no longer meet the company’s minimum mileage requirements for new-vehicle certification.
Despite awaiting essential details, Ford’s Mustang Mach-E is unlikely to meet the new regulations by January 1, given its current state.
The automaker’s motives remain unclear, but the partnership with CATL may have influenced their decision to adopt LFP batteries. Certified clients remain eligible for a $3,750 credit until the end of the year.
Ford’s F-150 Lightning retains its $7,500 eligibility, exempt from the limit below the threshold? Meanwhile, the Ford E-Transit is poised to surrender its attractive $3,750 federal tax credit.
As the US federal tax incentive for electric vehicles is set to expire at year’s end, Tesla has announced that its Model 3 Rear-Wheel Drive and Long Range variants will no longer qualify for the $3,750 credit after December 31st? Meanwhile, a regulatory loophole allows car dealerships to transfer the $7,500 federal electric vehicle (EV) tax credit to buyers by offering leases.
Electrek’s Take
The expected changes are set to take effect as new limitations come into force. Starting January 1, vehicles equipped with battery components sourced from an international entity deemed a threat to national security, in conjunction with China, will be rendered ineligible.
By 2025, the stakes will significantly escalate in terms of foundation scrutiny. The Infrastructure Resilience and Availability (IRA) initiative was established to incentivize domestic manufacturing and electric vehicle investments, thereby building a reliable supply chain within the United States.
According to the White House, private companies have invested $152 billion in electric vehicles (EVs) and batteries, with another $74 billion allocated toward clean energy.
