How To Know If A GM EV Is Eligible For A Tax Credit17
GM has created an online tool on its evlive site enabling buyers of the General’s electric vehicles to determine whether or not an EV qualifies for the “clean vehicle credit” federal income tax credit. The tool also shows how much credit the EV qualifies for out of the potential $7,500 maximum. The evlive site offers many other EV-related resources.
The tool enables potential purchasers to check on an EV’s tax credit eligibility by entering its VIN number in a search box and clicking or tapping “Search.”
Additionally, GM electric vehicles include a QR code printed in the upper right-hand corner of their dealership window sticker. A customer can scan this QR code using their smartphone and be taken directly to a page showing the EV tool’s results.
GM’s electric vehicles lost the original tax credit once The General sold a total of 200,000 EVs. However, the Inflation Reduction Act of 2022 introduced sweeping changes to the clean vehicle credit, restoring the eligibility of GM electric vehicles, with a few caveats.
While the Act passed in summer 2022 and became effective on August 16th, the 200,000-unit ceiling wasn’t lifted until January 1st, 2023. Even then, the full eligibility of GM EVs wasn’t assured. The clean vehicle credit is divided into two credits of $3,750, each contingent on a different aspect of a given model’s battery.
- Minerals – Beginning in 2023, 40 percent or more of the critical minerals used in batteries must be manufactured or assembled in North America. This percentage rises by 10 percent every following year.
- Components – Beginning in 2023, 50 percent or more of the value of the EVs battery components must be manufactured or assembled in North America. This percentage rises by 10 percent every following year.
GM CEO Mary Barra stated that the company believes that “out of the gate, we’re going to be eligible for the $3,750, and we’ll ramp to have full qualification in the next two to three years, getting up to the $7,500.”
A brief window exists between the removal of the 200,000-unit cutoff with the sunsetting of the old EV tax credit determination method, and the March 2023 publication of new U.S. Treasury EV tax credit guidance, in which the full $7,500 credit is likely available even if the technical requirements aren’t fully met.
With relatively few EV models currently in its lineup, most of GM’s electric vehicles currently qualify for the $7,500 credit. This includes the 2022 Chevy Bolt EV, the 2022 Chevy Bolt EUV, the 2023 Chevy Bolt EV, the 2023 Chevy Bolt EUV, and the 2023 Cadillac Lyriq.
Potential buyers of the Cadillac Lyriq already benefit from one legislative change. The U.S. Treasury Department updated vehicle classification standards in early February, reclassifying crossovers like the Cadillac Lyriq as SUVs rather than passenger cars. This update raised the MSRP limitation on EV tax credit eligibility for crossovers from $55,000 to $80,000.
At the moment, GM’s online tool for determining clean vehicle credit eligibility currently has very limited usefulness. Only a few EV models exist in GM’s brand lineups and most are eligible for the credit.
However, The General plans to offer EVs in one-third of all vehicle segments by 2025 with 30 individual EV models available worldwide. With GM Ultium-based EVs soon to be available in a broad range of segments in the United States, and at radically different price points, the tool will be highly useful in determining tax credit eligibility and amount in the near future.
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It would be helpful to know on what basis Bolts would be eligible for the IRA tax credit of $3750 AFTER the battery sourcing requirements are implemented? Is it on the basis of the batteries being recycled in the US or …what?
I appreciate your comment but I’m still looking for an answer to my question
The rebate has nothing to do with recycling. It’s based on where the battery components are sourced and the batteries are assembled.
It has nothing to do with recycling – it was designed to incentivize sourcing battery materials from the US and free-trade partners rather than China, the current source for the vast majority of batteries worldwide. But, I believe automakers will increase acquiring recycled NMC as it will be considered US-sourced. This is already spurring investment and improved processes in recycling initiatives in the US.
Thanks for your reply but the IRA language does include recycling: a minimum percentage of critical minerals must be extracted or processed in the US or free trade partners OR RECYCLED in N. America. And for further clarification it’s a tax credit not a rebate.
Still looking for an answer to how a Bolt would qualify for a tax credit when, supposedly in March, the battery sourcing guidelines would be enforced.
Dear Jay, Green Car Reports state the following: “It was previously thought the Bolt EV would only qualify for a $3,750 credit, but because the Internal Revenue Service (IRS) pushed back some of its battery requirements, the Chevy qualifies for the full $7,500 credit for the time being.” Article title: “GM Hikes 2023 Chevy Bolt EV Price as $7,500 Tax Credit Returns” Date: Jan 4, 2023 Author Stephen Edelstein
So, the answer to your question is now the tax credit, starting some time in March (I don’t know the exact date), would only be $3,750, I assume. I’d call GM and see if they know.
Dear Jay, The only one that would be able to answer your question is GM, because they are the only ones who know what percentage of recycled materials and where they are sourced in each Bolt’s battery. Use the tool that they provided where you enter the VIN number before you buy it, to see if you’ll get the tax credit and how much it will be. The link is in the above article.
Jeff, Thanks for the article. I have contacted GM and am waiting for an answer. I would like to know what aspect of the battery sourcing requirement would make the Chevy bolts still qualify for a tax credit after the March guidelines are published. As I said the Act states that recycling a minimum percentage of critical minerals in North American is one factor that makes a vehicle eligible for a $3750 tax credit, so I’d like to know if that’s the factor that GM is counting on. If the $3750 tax credit is available after the March decision, a family member will wait to purchase a new Bolt later this year rather than trying to find a late model used Bolt that qualifies for a similar tax credit ($4000) priced under $25K. It would take the pressure off shopping and competing for the limited supply of new Bolts, most of which have high dealer markups now.
I believe the VIN number look up only tells where the assembly of the vehicle took place.
If that is true, it’s terrible of GM to announce that and not have it work as intended. GMs entire EV strategy and push over the passed 8 years, ever since the Bolt EV was announced in 2015, has been a catastrophe. I know, I owned a Bolt EV and had to sell it back to them because of the fear of fire. If you go to any Chevy/GM/Cadillac dealer today, you’ll only find a super slow DC charging Bolt for sale if you’re lucky, and it’s now been 6 years since the Bolt was released in December 2016! That is terrible and I was GM’s number one EV fan when I bought the Bolt in 2017. I now own a
Kia EV6 Wind model. Much better all around than the Lyriq and more range too at 310 miles. Now the new Lyriq only gets 308 miles of range for $10,000 more than the Kia EV6 Wind RWD model after the Lyriq tax credit, if you earn enough to take advantage of it, which I don’t.
Conflicting stories on the 2023 Cadillac and 2024 Cadillac models built in 2023. Do both qualify for the 7500 or the 3750 credit? Pretty easy question to answer if the precentage of the battery components sources is given. The full $7500 would be nice!
Don’t worry be happy!
GM states that 30 EVs will be avaiable worldwide in 2 more years by 2025. But how many of those will be avaiable in the USA?? Also, how available will they be to purchase at MSRP?!?! Will they be able to produce enough without a dealer markup!?!? Those are the questions I’d like answers to!?!? So far only a total of 8 EVs will be avaiable in the USA by 2025 and most of those are very expensive even with the tax credit:
Hummer SUV EV
Battery car purchasers should be ashamed of stealing $11,500 ($7500 for first purchase and $4000 for second purchase if from a dealer) out of the pocket of their neighbors. It is known as stealing with a vote or Marxism. Karl Marx would be approving since he lived off the inheritance and gifts of his benefactor while abandoning his own wife and children. Sounds like Woke people. Biden authorized $369 BILLION dollars for the exaggeration of Global Warming (used to be known as season changes) and people wonder why we have horrible inflation. The misnamed Inflation Reduction Act of 2022 will instead increase inflation and reduce Medical Research incentives for drug companies so you and your family members will ultimately have less choice of ground-breaking new drugs to save your loved ones. Woke people are like politicians, you can tell when they are lying when their lips move.
I’m not stealing I’m getting some of the money the US government owes to me. I was not given a penny from the government during the pandemic while you and many others were handed thousands of dollars multiple times while sitting at home watching TV for two years and still getting paid. I had to work every day of that pandemic so don’t tell me I am stealing money from my neighbors. You and my neighbors that sat at home for two years or pretended to work at home while collecting a paycheck are the ones that stole from me and the US treasury. I am getting back what is rightfully mine and helping this country transition to the future by paying higher prices for the current electric vehicles which will eventually drop in prices for the masses.