GM, Ford announce several car models will lose electric vehicle tax credit in 2024

General Motors and Ford Motor Company announced some of their vehicles will become ineligible for the electric vehicle tax credits in the U.S. beginning on Jan. 1.

General Motors said Thursday that the Cadillac Lyriq and Chevrolet Blazer will temporarily be impacted. Ford said its E-Transit won’t be eligible for the $3,750 tax credit beginning on Jan. 1, as well as the Mach-E and Lincoln Aviator Grand Touring plug-in hybrid. 

Ford’s F-150 EV Lighting will still be eligible for the $7,500 tax credit, adding that the Lincoln Corsair Grand Touring will also keep its $3,750 tax credit. The Chevrolet Bolt EV will also remain eligible for the tax credit on Jan. 1.

Reuters reported that the temporary tax credit loss is due to two components of the car described as minor, stating that GM expects eligibility to come back for the Lyriq and Blazer in early 2024.

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The development comes after guidance released by the Biden administration on Dec. 1 limited Chinese components in batteries.

GM said it has developed sourcing plans for qualifying components.

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“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.

The Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV and Cadillac OPTIQ produced “after the sourcing change will be eligible for the full incentive,” GM said.

Tesla’s Model 3 Rear-Wheel Drive and Long Range vehicles will lose eligibility for the tax credits on Jan. 1, the company said last week.

Reuters contributed to this report.