GM, Ford Announce Changes to Electric Vehicle Tax Credits in 2024
General Motors and Ford Motor Company have announced that certain car models will no longer be eligible for the electric vehicle tax credits in the U.S. beginning in 2024.
Impacted Vehicles
General Motors has stated that the Cadillac Lyriq and Chevrolet Blazer will temporarily lose eligibility for the electric vehicle tax credit starting on January 1st.
Ford has also announced that its E-Transit, Mach-E, and Lincoln Aviator Grand Touring plug-in hybrid will be ineligible for the tax credit in the new year.
However, Ford's F-150 EV Lightning and Lincoln Corsair Grand Touring will still be eligible for the tax credit, and the Chevrolet Bolt EV will remain eligible.
Temporary Loss Due to Sourcing Change
The temporary loss of the tax credit is attributed to the Biden administration's guidance on limiting Chinese components in batteries.
According to Reuters, General Motors expects the eligibility of the Lyriq and Blazer to be restored in early 2024 after addressing the sourcing change.
GM has developed sourcing plans for qualifying components to ensure future eligibility.
Other Eligible Vehicles
General Motors has confirmed that the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac OPTIQ produced after the sourcing change will remain eligible for the full incentive.
Tesla's Model 3 Rear-Wheel Drive and Long Range vehicles will also lose eligibility for the tax credits starting January 1st.
These changes reflect the evolving landscape of electric vehicle tax credits.
