News Article:
In a move to support customers affected by recent changes to the eligibility criteria for the EV tax credit, General Motors (GM) has announced a $7,500 incentive for electric vehicles (EVs) that no longer qualify for the credit. The decision comes after the exclusion of several GM electric models from the tax credit, effective immediately.

Two weeks ago, GM revealed that the Chevy Blazer EV and Cadillac Lyriq would lose eligibility for the US EV tax credit, with the changes taking effect at the start of 2024. The company attributed this setback to "two minor components" in the affected EV models, but did not provide further details.

Fortunately, GM clarified that all other EVs priced within the cap would still be eligible for the tax credit. However, the company also mentioned that the Chevy Bolt EV, which is scheduled to cease production, would be the only exception. GM's other electric models, such as the GMC Hummer EV, exceed the $80,000 threshold set for SUVs and pickups.

To bridge the gap for buyers impacted by the changes, GM has announced that it will provide the same EV tax credit incentive for any vehicles that no longer meet the new guidelines. This move aims to ensure that customers are not deterred by the loss of the tax credit and can continue to embrace EVs.

The recent changes to qualification criteria for the EV tax credit also introduced additional restrictions. Notably, EVs using battery components sourced from a "foreign entity of concern" lost their eligibility on January 1st. As a result, only 13 EV models are now eligible for the tax credit in 2024.

Among the EVs affected by the changes are the Tesla Model 3 RWD and LR, Volkswagen ID.4, Ford Mustang Mach-E, and Nissan LEAF. However, Tesla has confirmed that all Model Y variants will still qualify for the full $7,500 tax credit. Furthermore, the updates allow customers to claim the credit at the point of sale, rather than waiting until their tax return filing.

While GM has encountered delays in the production of several EV models, including the Equinox, Silverado RST, and GMC Sierra Denali, the company is determined not to fall further behind as the industry transitions to electric vehicles. Tesla's Model Y, which retains full eligibility for the tax credit, continues to dominate sales globally. Tesla achieved a record-breaking 1.81 million EVs sold in 2023, marking a 38% increase from the previous year.

Ford's F-150 Lightning has established itself as the best-selling electric pickup after a successful fourth quarter. Additionally, automakers like Hyundai and Volvo anticipate a significant year as they introduce highly-anticipated EVs such as Volvo's EX30, starting at $35,000.

With GM's $7,500 incentive for non-qualifying EVs, the company aims to support its customers while maintaining competitiveness in the evolving EV market. As the industry experiences rapid growth and heightened consumer interest, GM's proactive measures are expected to help navigate the changing landscape.

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