Updated January 4th, 2024 at 17:58 IST
GM announces $7500 incentives for EVs after losing US tax credit
Last month, General Motors announced that all its EVs, excluding the Chevrolet Bolt, would temporarily become ineligible for the tax credit.
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EV Incentives: General Motors (GM) announced that the Detroit-based automotive manufacturer will be offering incentives of $7,500 on its electric vehicles, after the recent loss of a US government tax credit.
The US Department Treasury released guidelines in December focusing on fresh requirements for battery sourcing, with a goal of reducing dependence on China, regarding the US electric vehicle (EV) supply chain.
These guidelines became effective this Monday.
The parent company of popular auto-labels like Chevrolet, and Cadillac informed dealers that it would provide the equivalent EV tax credit amount "for any vehicles that became ineligible due to the new guidelines, according to media reports.
Image credit: Chevrolet
Last month, the company announced that all its EVs, excluding the Chevrolet Bolt, would temporarily become ineligible for the tax credit.
The auto-major clarified that the Cadillac Lyriq and Chevy Blazer EVs were losing eligibility as a result of issues pertaining to two minor components.
GM anticipates that following a sourcing modification, both the Lyriq and Blazer EVs will requalify for eligibility in early 2024.
Image Cr: Cadillac
Furthermore, they specified that the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac OPTIQ manufactured "after the sourcing change" will be eligible to receive the full incentive.
Likewise, Ford revealed last month that its E-Transit and Mach-E would no longer qualify for the $3,750 tax credit, meanwhile, the F-150 EV Lightning pickup truck and the Lincoln Corsair Grand Touring SUV retained their tax credits.
On Wednesday, Ford stated its plans to raise the prices of its entry-level F-150 EVs by $5,000 to $10,000, while reducing prices for select premium models by up to $7,000.
The 2022 Inflation Reduction Act (IRA) brought significant reforms to the EV tax credit.
Under this law, vehicles are now mandated to be assembled in North America to qualify for any tax credits, effectively disqualifying nearly 70 per cent of the models that were previously eligible.
However, the IRA rules have an exception for leased EVs, allowing them to qualify for $7,500 tax credits without requiring them to meet the battery or North America assembly requirements.
Published January 4th, 2024 at 17:04 IST