--- title: "GM EVs Get Massive $7,500 Discount off MSRP Amid Lost Tax Credits" description: "General Motors will offer customers a $7,500 discount on electric vehicles that lost their federal tax credits at the start of 2024." date: "2024-01-04" modified: "2024-01-04" authors: - name: "Nico DeMattia" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/nico-demattia" url: "https://www.thedrive.com/news/gm-offers-ev-buyers-7500-discounts-to-make-up-for-lost-tax-credits" categories: - "GM News" - "News" - "News by Brand" tags: - "Cadillac" - "Chevrolet" - "Electric Vehicle" - "Lyriq" - "suv/crossover" --- # GM EVs Get Massive $7,500 Discount off MSRP Amid Lost Tax Credits ![]() *Cadillac* 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." ![]() **Chevrolet** 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. *Got tips? Send 'em to tips@thedrive.com* ## Author Nico is a writer and reviewer from New Jersey who probably thinks he’s a lot funnier than he actually is. His love of cars began when he was just a kid playing Gran Turismo 3, grinding out enough race wins with a Mazda Miata to save up for an in-game RUF 911. That passion for small, lightweight sports cars drove his desire to learn more about the industry, get his hands on as many cars as he could, and bring those experiences to life on the page. He cut his teeth writing about BMWs, Volkswagens, and Audis, mostly, and has owned far too many of each. He’s on his fourth 3 Series sedan, but all of his old, cheap German cars have forced him to learn more about car maintenance than his mechanical capability can handle. Too many late nights have been spent scrambling to get a car running by morning so he could get to work. For some reason, he never seems to learn that old Bimmers probably aren’t the best daily drivers. But he loves more than just old German cars. He’ll gladly drive and discuss anything with four (or even three) wheels. Cars aren’t his only passions, though. Nico is also a big nerd and loves movies, video games, comic books, and cares far too much about the New York Giants. So don’t be surprised if you see football references or dumb, obscure movie quotes in any of his car reviews. ### Author social links [Instagram]() [LinkedIn]()