American automobile giant General Motors (GM) has announced a momentary setback for the Chevy Blazer EV and Cadillac Lyriq, declaring that these vehicles will lose eligibility for the federal tax credits, starting January 1, 2024. The disqualification of the Chevy Blazer EV and Cadillac Lyriq attributed to "two minor components," but it is expected to be short-lived as the American car manufacturer has plans to source qualifying parts for these EVs starting early next year.

Moreover, GM has assured consumers that all other electric models within the price cap will maintain eligibility for the US federal government’s tax credit of up to $7,500. The automaker also expressed confidence that the Chevy Blazer EV and Cadillac Lyriq will regain their EV tax credit eligibility as soon as early 2024, though specific details regarding the exact timing of this restoration remain under wraps.

From the 1st of January, the Chevy Bolt EV will be the brand’s sole model eligible for the federal government’s EV tax credit as the production of the current model concludes. GM's other high-end EVs, including the GMC Hummer EV will not be eligible for the tax credit as they are priced above the $80,000 threshold for the tax credit. It may be noted here that the 2024 GMC Hummer pickup and SUV start at a minimum of $96,550.

Despite the temporary interruption, GM's upcoming EVs, such as the all-electric Chevy Equinox, Silverado EV, and Cadillac OPTIQ, and GMC Siera manufactured after the sourcing change, will likely be able to qualify for the full tax credit of the federal government once the aforementioned minor component issue is resolved.

GM is not the only automotive brand that is facing the temporary ineligibility of its EVs for the incentives. It actually aligns with a broader trend in the automotive industry, where many brands like Ford anticipate a similar loss of eligibility for some of their EVs under the revised tax credit rules. Ford's Mustang Mach-E is expected to be affected, possibly due to ties with CATL for LFP batteries. Meanwhile, Ford's F-150 Lightning will retain its $7,500 eligibility for models that fall under the tax credit limit. Meanwhile, electric car pioneer Tesla has also confirmed that its Model 3 RWD and Long-Range models will also lose eligibility for the federal government’s tax credit at the end of the year.