Key Takeaways
- General Motors said it would offer $7,500 in incentives to buyers of electric vehicles (EVs) that lost eligibility for tax credits due to new Treasury Department rules that took effect Monday.
- No GM EVs other than the Chevy Bolt qualify for the $7,500 tax credit as of Monday because they contain components from countries on a list of banned sources.
- The automaker said it will be changing its sourcing so that its vehicles will soon qualify for buyer tax credits under the new regulations.
General Motors (GM) shares dropped 1.8% in intraday trading Wednesday as the carmaker announced it would offer $7,500 in incentives to buyers of its electric vehicles (EVs) that are now ineligible from receiving government EV tax credits.
GM said last month that none of its EVs except the Chevy Bolt would qualify for the consumer tax breaks because of new Treasury Department rules that took effect Monday as part of the Inflation Reduction Act of 2022 aimed at reducing U.S. manufacturers’ reliance on parts from China and other countries.
The company reportedly said it would provide its dealers with the equivalent of any tax credit that would have gone to purchasers of those vehicles, which they can pass along to customers.
GM said that its Cadillac Lyriq and Chevy Blazer EVs have only two components that fall under the restrictions. The company said it expects a sourcing change will make the Lyriq and Blazer eligible for the tax credits early this year, and that its Chevy Equinox EV, Chevy Silverado EV, GMC Sierra EV, and Cadillac OPTIQ models produced after the rule change will also fall within the guidelines.
Shares of General Motors were down 1.8% to $35.40 per share as of about 2 p.m. ET Wednesday, but have gained 4.7% over the past year.
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