Almost all of General Motors’ electric cars lost their $7,500 tax breaks when 2024 came around. In December, the US Treasury Department released new rules that were meant to get US electric vehicle (EV) makers to stop buying battery parts from China. When the new laws went into action on January 1, they took away credits from almost all GM EVs except the Chevrolet Bolt EV and EUV. GM is making things right by lowering the prices of the Cadillac Lyriq and Chevy Blazer EVs by $7,500. However, federal tax breaks are not available for GM’s new Ultium-based EVs because only two of the battery parts come from China. GM says these disqualifications will only last for a short time because, by early 2024, it plans to buy these parts from authorized vendors. Once that is done, all of its new EVs will be qualified for the $7,500 discounts again. “GM is well-positioned for our dealers and customers to take advantage of the clean vehicle tax credit,” GM told The Invoice Pricing. After looking over the Treasury’s long-awaited draft rules, it was found that the Cadillac Lyriq and Chevrolet Blazer EV will no longer be eligible for the clean car credit on January 1, 2024. This is due to two small issues. GM has changed its plans to get qualified parts in early 2024 so that the trend toward electric cars can continue. Besides that, the company will help its users and dealers. The Blazer EV is no longer on sale because of reliability problems, so this discount doesn’t help people who are thinking about buying one. GM hasn’t said when the electric Blazer will be back on the market, but because the battery parts have been updated, federal tax breaks for the SUV may be reinstated by then. It has yet to be determined when GM will start using its new plan for getting parts. The Cadillac Optiq, Chevy Equinox EV, Silverado EV, and GMC Sierra EV should be available at stores after GM changes its supply chain. This means that customers can get tax credits right away. Even so, tax breaks will still be available for all sales of leased and business fleet electric cars in 2024.
