GM Offering $7,500 To Electric Vehicle Buyers To Cover Lost Tax Credit
GM is putting its money where its electric vehicles are.
All of the automaker’s 2024 EV models lost their eligibility for the $7,500 federal tax credit on electric vehicle purchases on Jan. 1 due to changes in the rules regarding component sourcing.
The program requires that certain percentages of and EV’s battery pack construction and critical materials come from the U.S. and free trade partners.
The only GM products that currently qualify are the leftover Chevrolet Bolt and Bolt EUV, which were discontinued in December.
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According to Cars.com, there are about 4,000 of the two models still available on dealer lots. As for the rest, GM is offering an Ultium Promise Bonus Cash incentive to make up the difference until it brings the pack back into compliance with new parts.
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As of now, there are only two models on sale that would fall under the tax credit’s price threshold where the incentive applies: Versions of the Chevrolet Blazer EV and Cadillac Lyriq EV that have MSRPs less than $80,000.
GM told Reuters that it expects to have the issue resolved by the time additional retail EVs go on sale later this year, including the Chevrolet Silverado EV and Chevrolet Equinox EV.
According to the Cadillac website, the incentive program applies to vehicles customers take delivery of by June 3.
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All of this only applies to purchases. Leases aren’t bound by the sourcing restrictions and lessors can roll all or some of the credit into the payment plan.
Cadillac delivered 9,154 Lyriqs in 2023 and Chevrolet 482 Blazer EVs, but the latter is currently not being sold as several software issues are being ironed out.
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