General Motors Company GM is reportedly offering $7,500 incentives on its electric vehicles that lost a U.S. government tax credit this week.
The automotive behemoth told its dealers it would provide the equivalent EV tax credit purchase charge "for any vehicles that became ineligible due to the new guidelines," Reuters reported.
GM anticipates that following a sourcing adjustment, the Lyriq and Blazer EV will regain eligibility early in 2024.
Additionally, the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac OPTIQ produced "after the sourcing change will be eligible for the full incentive."
The number of EV models qualifying for U.S. EV tax credits fell from 43 to 19, the Reuters report read.
Under the new regulations, purchasers can avail themselves of tax credits, with a maximum of $7,500, directly at participating dealerships during the purchase. Eligibility is subject to set limits on both vehicle price and buyer income.
The Inflation Reduction Act of 2022 revamped the EV tax credit, mandating North American assembly for eligibility.
This change excluded nearly 70% of the previously qualified models. However, under IRA rules, leased EVs can still qualify for $7,500 tax credits without the battery or North American assembly prerequisites, the report read.
Price Action: GM shares are trading lower by 2.43% to $35.17 on the last check Wednesday.
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