GM EVs Get Massive $7,500 Discount off MSRP Amid Lost Tax Credits

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."