General Motors will give shoppers with a $7,500 incentive on all of its electric autos that are no longer eligible for the federal EV tax credit.

As of January 1, the Chevrolet Bolt EV and Bolt EUV are the company’s only two models nonetheless eligible for the tax credit. While that is poor news for shoppers, the carmaker has told the Detroit Free Press that it will offer you a $7,500 discount on its other EVs till it can make the needed sourcing modifications to make them eligible for the tax credit.

Changes produced imply that EVs with battery elements produced or assembled by a organization primarily based in a ‘foreign entity of concern,’ like China, North Korea, Russia, and Iran are not eligible for any portion of the federal tax credit. Those that are eligible need to have batteries that have at least 50% of their elements sourced from the U.S., Mexico, or Canada and the raw components of their batteries need to also be sourced from a nation the U.S. has a cost-free trade agreement with. Vehicles that do not fulfill this requirement can only obtain a $three,750 credit.

 GM Offering $7,500 Incentive To EVs Missing Out On Tax Credit

The two GM goods that had been eligible for the $7,500 tax credit final year which are no longer eligible are the Chevrolet Blazer EV and Cadillac Lyriq. However, GM spokeswoman Liz Winter has confirmed the carmaker is generating a sourcing alter that will make them eligible once more.

Read: IRS Confirms All EVs And PHEVs Eligible For $three,750 And $7,500 Tax Credit In 2024

“The Cadillac Lyriq and Chevrolet Blazer EV will temporarily lose eligibility for the clean vehicle credit on Jan. 1, 2024 because of two minor components,” she told the Detroit Free Press. “While we await final rules, GM has pulled ahead sourcing plans for qualifying components in early 2024 and will advocate for our dealers and customers who purchase vehicles built ahead of the new guidance.”

 GM Offering $7,500 Incentive To EVs Missing Out On Tax Credit