Changes in Electric Vehicle (EV) Tax Credits in the United States will start impacting EVs from General Motors, Ford, and Tesla.
The United States is behind in global EV sales with 13 percent share. The implementation of new EV subsidies in the US has had varying impacts on different OEMs in the market, Canalys said in its report recently.
General Motors (GM) revealed that effective January 1st, both the Cadillac Lyriq and Chevrolet Blazer EV will temporarily lose eligibility for the U.S. electric vehicle tax credit, Reuters news report said.
As a consequence, only the Chevrolet Bolt EV from GM’s lineup will retain eligibility for the consumer EV tax credit at the start of the new year.
Ford Motor also confirmed adjustments in its tax credit status, stating that its E-Transit will no longer qualify for the $3,750 tax credit beginning January 1st. Similarly affected are the Mach-E and Lincoln Aviator Grand Touring plug-in hybrid models. However, the F-150 EV Lightning will maintain its eligibility for the $7,500 credit, while the Lincoln Corsair Grand Touring will retain a $3,750 credit.
GM clarified that the temporary ineligibility of the Cadillac Lyriq and Chevrolet Blazer EV is due to specific minor components. The company indicated accelerated plans to source qualifying components by early 2024, expecting both models to regain eligibility around that time.
Moreover, GM anticipates that EVs such as the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac OPTIQ produced after the sourcing change will qualify for the full incentive.
These alterations stem from the U.S. Treasury’s recent guidelines outlining new battery sourcing restrictions set to come into effect on January 1st. The regulations aim to reduce reliance on Chinese components within the U.S. electric vehicle supply chain.
GM highlighted that the Treasury’s proposed stringent rules will disqualify EVs with certain foreign battery content, primarily low-value components, resulting in the ineligibility of most EVs starting in the new year.
In a related development, Tesla announced that its Model 3 Rear-Wheel Drive and Long Range vehicles will also lose federal tax credits starting January 1st. The automaker confirmed this change in tax credit status last week.