GM EVs Get Massive $7,500 Discount off MSRP Amid Lost Tax Credits
The Cadillac Lyriq, Chevy Blazer EV and other all-electric GM products should regain tax credits later this year, when GM changes suppliers.
The moment the calendar turned over to 2024, almost all of General Motors' electric vehicles lost their $7,500 EV tax incentives. Back in December, the United States Treasury Department announced new guidelines aiming to wean U.S. EV manufacturers away from Chinese-sourced battery components. When those guidelines took effect on January 1, they axed almost every GM EV's credit, with the exception of the Chevrolet Bolt EV and EUV. To make up for that, GM is offering $7,500 discounts on the Cadillac Lyriq and Chevy Blazer EV.
According to GM, there are only two battery components used in its new Ultium-based EVs that are sourced from China, disqualifying them from federal tax incentives. However, GM claims such disqualifications will be short-lived, as it's going to source those components from qualifying suppliers sometime in early 2024. When it does, all of its future EVs will regain their $7,500 incentives.
GM told The Drive: "GM is well positioned for our dealers and customers to take advantage of the clean vehicle tax credit. After reviewing Treasury's long-awaited proposed guidance, the Cadillac Lyriq and Chevrolet Blazer EV will temporarily lose eligibility for the clean vehicle credit on Jan. 1, 2024 because of two minor components. GM has pulled ahead sourcing plans for qualifying components in early 2024 and will support our dealers and customers, and importantly, keep EV momentum."
Unfortunately for potential Blazer EV customers, this discount isn't very helpful, as there's an ongoing stop-sale on the Blazer EV due to reliability issues. GM hasn't announced when the electric Blazer will return to sale, but its new battery components might renew the SUV's federal tax credits by then.
There's no word on exactly when GM's new component sourcing will go into affect. Since the Cadillac Optiq, Chevy Equinox EV, Silverado EV, and GMC Sierra EV should all hit dealers after GM makes its supply chain change, they should qualify for tax credits right out of the gate. However, all leased and commercial fleet EV sales will continue to be eligible for tax incentives in 2024.
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