20,000 GM EVs did not qualify for $7,500 tax credit

General Motors (GM) said 20,000 of its electric vehicles (EVs) were left out of the U.S. Federal tax credit range earlier this year.

Starting January 1, 2024, the IRS has applied new guidelines for a $7,500 EV tax credit. The initial list slashed this federal subsidy for many cars, including the ones from GM.

The new rules were notified last year and require certain car components to be produced inside the U.S. or its friendly markets. That doesn’t include car components processed in China.

GM Chief Financial Officer Paul Jacobson said on Wednesday for over two months of this year (January-February) the company built around 20,000 EVs that did not qualify for EV tax credit.

Nearly all of the GM models lost access when the new EV tax rules kicked in on Jan. 1. The Detroit-based car maker has since changed the supply chain to regain EV tax credit. A major issue in the tax credit qualification is battery sourcing and it is similar in GM’s case.

Currently, the company has the following EVs listed for a $7,500 EV tax credit:

• Cadillac Lyriq 2024
• Chevrolet Blazer EV 2024
• Chevrolet Bolt EUV 2022-2023
• Chevrolet Bolt EV 2022-2023

EV maker Tesla on the other hand, also lost EV credit access for its popular Model 3 EV due to compliance issues for battery sourcing.

(source – Yahoo)