GM Will Discount Models Not Currently Eligible for $7,500 Tax Credit

Chris Teague
by Chris Teague

The EV tax credit rules changed again at the beginning of 2024, and stricter requirements on battery materials sourcing cut several previously qualified models from the list. Most GM models failed to make the cut, at least temporarily, and the automaker is offering $7,500 compensatory discounts to keep sales flowing.

The Detroit Free Press reported that GM will give discounts while awaiting updates to requalify some models. A spokesperson told the publication, "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. While we await final rules, GM has pulled ahead sourcing plans for qualifying components in early 2024 and will advocate for our dealers and customers who purchase vehicles built ahead of the new guidance.”

Currently, GM’s only qualifying models are the Chevrolet Bolt EV and Bolt EUV, which have been discontinued and are selling through the last of their dealer inventories. While the Blazer EV and Cadillac Lyriq are missing out on credits, it’s important to note that Chevy issued a stop-sale for the Blazer to fix software issues, so the credits wouldn’t do much to help its case at the moment.

The stricter battery sourcing rules aim to take some of the wind out of China’s sails in the EV race. The country produces a massive number of raw materials and components, and the federal government wants to bolster North American supply chains as EVs grow in popularity.

[Image: Cadillac]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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9 of 48 comments
  • Akear Akear on Jan 04, 2024

    You can simplify the rhetoric and just call GM trash .

  • Jalop1991 Jalop1991 on Jan 04, 2024

    so the $7500 thing was just a mechanism designed to use you, the citizen, to funnel tax dollars to the corporations.

    And do so in plain sight, all the while making everyone oooh and aaahhh about how great it is.

    People are...amazing. And to think, we let them vote and serve jury duty.

    • See 1 previous
    • 1995 SC 1995 SC on Jan 05, 2024

      Your choice of political party is based on which corporations you want your representatives to funnel money to.

  • TheEndlessEnigma TheEndlessEnigma on Jan 04, 2024

    Amazing, a government freebie goes away....and miraculously the price drops by the giveaway amount. never saw that coming.

  • NJRide NJRide on Jan 04, 2024

    1) I may have to start imitating DeadWeight in these comments

    2) Is there a list of the Buick franchises that took the buyout?

    • See 1 previous
    • 28-Cars-Later 28-Cars-Later on Jan 04, 2024

      We do need a Deadweight to balance, the dead weight.