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General Motors’ (GM) EVs to Get Ineligible for Tax Credits

General Motors GM expects its Cadillac Lyriq & Chevrolet Blazer EVs to temporarily lose US electric vehicle (EV) tax credit under the new guidance, starting Jan 1, 2024. Per Liz Winter, spokesperson of GM, the models will lose eligibility because of two minor components, namely separators and electrolytes. The automaker has initiated plans to source parts which will qualify for tax credits, starting next year. Without providing a specific timeline, the automaker said that both electric SUVs would again qualify for tax credit in early 2024.

Chevrolet Bolt EV and Bolt EUV will remain eligible for tax credit starting Jan 1. Models like electric Chevy Equinox, Silverado EV, GMC Sierra and Cadillac OPTIQ, manufactured subsequent to the procurement alteration, will be eligible for full incentive of $7,500.

Per a letter signed by John Roth, vice president of Cadillac, and Scott Bell, vice president of Chevrolet, the company will provide the equivalent EV tax credit purchase amount for all the vehicles that became ineligible due to the new guidelines.

GM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Following a guidance released by the Biden administration that aims to limit the use of China-made components in batteries, most electric EVs became ineligible for tax credit.

Ford F also expects to lose $3,750 tax credit, starting Jan 1, on E-Transit electric van & Mustang Mach-E. It also expects to lose $7,500 incentive on Lincoln Aviator Grand Touring plug-in hybrid. Meanwhile, F-150 Lightning, Ford Escape and Lincoln Corsair Grand Touring plug-in hybrids will remain eligible for their respective tax incentives.

Tesla TSLA will be affected by the changes in guidance due to China-sourced batteries. RWD and Model 3 Long Range will lose the $7,500 tax credit, starting next year. Tesla hinted that Model Y will also be impacted by the new guidance.

Stellantis STLA will remain unaffected by the amendments. Chrysler Pacifica minivan, Jeep Wrangler and Grand Cherokee 4xe SUVs are expected to retain their respective tax incentive.

On the bright side, eligible EV consumers do not need to claim credit on their taxes and will get it immediately at the point of sale. However, the new guidance will narrow down the list of eligible EVs for tax credits next year.

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This article was originally published by a finance.yahoo.com . Read the Original article here. .

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