Electric vehicle tax credit will be eliminated for several car models in 2024, according to GM and Ford

Starting on January 1, certain vehicles manufactured by General Motors and Ford Motor Company will no longer qualify for the electric vehicle tax credits in the United States.

On Thursday, General Motors announced that there will be a temporary impact on the Cadillac Lyriq and Chevrolet Blazer. Beginning on January 1, Ford announced that the $3,750 tax credit will not be available for its E-Transit, Mach-E, or Lincoln Aviator Grand Touring plug-in hybrid vehicles.

The $7,500 tax credit is still available for Ford’s F-150 EV Lighting, and the $3,750 tax credit is still available for the Lincoln Corsair Grand Touring. Beginning on January 1, the tax credit will also continue to apply to the Chevrolet Bolt EV.

It states that GM anticipates eligibility to return for the Lyriq and Blazer in early 2024. The temporary tax credit loss is caused by two of the car’s components that are classified as minor.

This development follows the Biden administration’s Dec. 1 guidance restricting the use of Chinese components in batteries.

According to GM, plans for sourcing qualified components have been created.

“Treasury proposed strict rules disqualifying all EVs with certain foreign battery content including low-value components, which effectively means most EVs will not be eligible beginning on January 1,” GM said in a statement.

According to General Motors, vehicles manufactured “after the sourcing change will be eligible for the full incentive,” including the Cadillac OPTIQ, GMC Sierra EV, Chevrolet Equinox EV, and Silverado EV.

The company announced last week that starting on January 1, owners of Tesla’s Model 3 Long Range and Rear-Wheel Drive vehicles will no longer be eligible for tax credits.