GM says it expects some electric vehicles to receive a $7,500 tax credit
© Reuters. FILE PHOTO: The GM logo is seen at the General Motors plant in Sao Jose dos Campos, Brazil, January 22, 2019. REUTERS/Roosevelt Cassio/File Photo/File Photo/File Photo
By David Shepardson
WASHINGTON (Reuters) – General Motors Co expects certain types of electric vehicles (EVs) to be eligible for a $7,500 tax credit after tighter Treasury Department guidance goes into effect on April 18, the American automaker said on Friday.
“We expect some of our Ultium-based electric vehicles, including the Cadillac Lyriq and additional electric vehicles launching this year such as the Chevrolet Equinox EV SUV and Blazer EV SUV, to qualify for the credit. $7,500 in full by 2023,” GM said in a statement.
EV battery sourcing guidance issued on Friday triggered new requirements for key battery components and minerals.
GM makes Ultium batteries at its joint venture Ultium Cells LLC in Ohio, the first of three planned U.S. battery plants with partner LG Energy Solution.
GM also currently receives a $7,500 tax credit for the Chevrolet Bolt and is eligible for $7,500 for the upcoming Chevrolet Silverado 2024 model. GM said it expects its Bolt vehicles to be eligible for some level of credit once the rules go into effect.
Vehicles that do not qualify for the consumption tax credit may be eligible for the clean commercial tax credit, including when renting. GM says customers of its Chevrolet Silverado EV fleet will benefit from a $7,500 commercial incentive.
Stellantis, Chrysler’s parent company, is reviewing the rules to determine potential impacts and said customers have until April 17 to enjoy a $7,500 tax credit on plug models. -in Chrysler Pacifica, Jeep Grand Cherokee 4xe or Jeep Wrangler 4xe.
Ford Motor (NYSE: New York) said it plans to share more information about the impact on its electric vehicles soon. Tesla (NASDAQ: NASDAQ:) said Wednesday the Model 3’s rear-wheel drive credits will drop due to the guidance.
The rules are aimed at removing the US’s dependence on China’s EV battery supply chain.
US officials acknowledged the credits would be cut or eliminated for some vehicles. By April 18, the government will publish a revised list of eligible vehicle models and the amount of the tax credit.