American legacy automaker General Motors is counterbalancing the loss of federal tax credits for some of its electric vehicle offerings by providing a discount in the United States, CarsDirect reported, citing a memo to dealers.
GM offsets federal tax credit loss with customer incentive
GM declared plans as early as the beginning of the year to make up for the lost federal tax credit for electric vehicle models that lost federal tax credit eligibility due to the rule changes under the Inflation Reduction Act.
The new federal tax credit rules for electric vehicles now limit pricing to $80,000 (MSRP). It also imposed new battery sourcing and processing requirements. These more stringent requirements disqualified many EVs, even those US-made that previously qualified.
As a result, none of the currently available trims of the Chevrolet Silverado EV no longer qualify for the $7,500 federal tax credit.
GM’s Ultium Promise Bonus
In order to make up for tax credit ineligibility, GM decided to provide its own $7,500 discount for some of the ineligible Chevrolet Silverado EV variants under its Ultium Promise Bonus.
Last week, GM sent a memo to its dealers stating that buyers (not lessees) of Chevrolet Silverado EV 3WT and the 4WT trims can benefit from the $7,500 discount.
The deal lasts until January 1, 2025. These work truck models, identified by the “WT” label, are designed for commercial fleets and unavailable to individual consumers.
Other available incentives for the Chevrolet Silverado EV
The $74,800 3WT and $78,900 4WT trims of the Chevrolet Silverado EV lost their federal tax credit eligibility due to their battery mineral sourcing, not the pricing.
Meanwhile, the $96,495 RST trim lost its federal tax credit also due to pricing rules. While this trim currently does not access GM’s Ultium Promise Bonus, there are still lease offers for interested customers.
Presented below is the lease offer for the 2024 Silverado EV RST First Edition 4WD as of July 2024:
- $1,384 per month for 48 months
- Ultra low-mileage lease with 10,000 miles per year
- $3,884 due at signing (after all offers)
- $0 security deposit
- Available in the Miami market area
For reference, here are the pricing of the 2024 Chevy Silverado EV trim levels (including a $1,995 destination freight charge):
- 1WT 2WD – $41,795
- 3WT 4WD with 1FL Fleet Package – $68,895
- 3WT 4WD – $74,900
- 4WT 4WD – $79,900
- RST First Edition 4WD – $96,495
GM seems to be particularly focused on selling its Silverado EV work trucks. CarsDirect reported last month that the company encouraged dealers with a $2,500 incentive for each electric Silverado work truck they sold, indicating a notable increase from just $1,000 before that date.
