GM dropped a New Year’s bummer announcing its buzzy Cadillac Lyriq and Chevy Blazer EVs will briefly lose eligibility for the full $7,500 federal EV tax credit starting January 1st, 2024.
From increased battery component sourcing requirements, two minor parts in the Lyriq and Blazer battery packs fall short of the raised thresholds for US and free trade partner content.
This means buyers missing out on the juicy credit will need to fork over an extra $7,500 at purchase during 2024 until the issue is resolved. GM stated they’ve already pulled ahead plans to re-source the non-compliant battery components from certified locations in early 2024.
So while a disappointment for eager Lyriq and Blazer reservation holders, the loss of eligibility should prove short-lived. Come early 2024, both flagship EV models will meet the tightened regulatory standards.
GM fully intended the Lyriq and Blazer to qualify for the revived tax credit. However, the Treasury Department established stringent rules at the 11th hour. Their inclusion of minor foreign-sourced elements like battery components immediately disqualified numerous EVs.
Nonetheless, GM says buyers can count on the Lyriq and Blazer recapturing their rightful place among other $7500-credit-eligible American EVs sometime in 2024. Savvy shoppers may do well waiting a few extra months for their new GM EV to maximize savings.
Of course, one can’t blame customers for feeling cheated by this EV subsidy bait-and-switch. GM could have shown foresight by ensuring compliance before taking reservations. For now, early Lyriq and Blazer adopters must swallow the loss or join the waiting game.