GM says it expects some EVs to receive $7,500 US tax credits
Reuters
Published Mar 31, 2023 04:07PM ET
Updated Mar 31, 2023 05:26PM ET
By David Shepardson
WASHINGTON (Reuters) -General Motors Co expects some electric vehicles (EVs) will qualify for $7,500 U.S. tax credits after stricter Treasury Department guidance takes effect April 18, the U.S. automaker said on Friday.
"We expect a number of our Ultium-based EVs, including the Cadillac Lyriq and additional EVs launching this year like the Chevrolet Equinox EV SUV and Blazer EV SUV, to qualify for the full $7,500 credit in 2023," GM said in a statement.
The EV battery sourcing guidance issued on Friday triggers new requirements for critical minerals and battery components.
GM produces Ultium batteries at its joint venture Ultium Cells LLC plant in Ohio, the first of three planned U.S. battery factories with partner LG Energy Solution.
GM currently also receives $7,500 tax credits for the Chevrolet Bolt and is eligible for $7,500 for the forthcoming 2024 model Chevrolet Silverado. GM said it expects its Bolt vehicles to qualify for some level of credit after the rules take effect.
Vehicles not eligible for consumer tax credits can qualify for clean commercial tax credits including in leasing. GM said Chevrolet Silverado EV fleet customers will benefit from the $7,500 commercial incentive.
Chrysler-parent Stellantis is reviewing the rules to determine potential impacts and said customers have until April 17 to benefit from the $7,500 tax credit for plug-in Chrysler Pacifica, Jeep Grand Cherokee 4xe or Jeep Wrangler 4xe.
Ford Motor (NYSE:F) said it plans to share more information soon about the impact on its EVs. Tesla (NASDAQ:TSLA) said on Wednesday the Model 3 rear-wheel drive credit will be reduced as a result of the guidance.
The rules are aimed at weaning the U.S. off dependence on China for EV battery supply chains.
U.S. officials acknowledged credits will be cut or eliminated for some vehicles. The government will publish by April 18 a revised list of qualifying models and tax credit amounts.
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Written By: Reuters
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