Sunday, July 14, 2024
NewsThe Cadillac Lyriq will Now Qualify for US Clean Vehicle Tax Credits

The Cadillac Lyriq will Now Qualify for US Clean Vehicle Tax Credits

The 2023 Cadillac Lyriq will now benefit from the $7,500 Clean Vehicle Federal credit in the US.

  • The Lyriq was previously considered a sedan by the US Government.

  • This now means the Lyriq can benefit from up to $7,500 in credits

  • The two-row Tesla Model Y benefits from the same reclassification.

American buyers of the Cadillac Lyriq will now be able to qualify for Clean Vehicle federal tax credits due to reclassification.

Indeed, the Cadillac Lyriq (and the two-row Tesla Model Y) was previously considered a sedan by the US Treasury Department, the government body that determines which vehicles can benefit from a tax credit.

This was due to a technicality that has now been resolved by basing the determination of eligibility on the EPA’s classification.

General Motors had campaigned for that change since most of the Lyriq’s direct competitors were considered SUVs from the get-go.

This is important since the Federal tax credit structure is different for trucks, SUVs, and vans than it is for sedans and other vehicle types.

Indeed, sedans can only qualify for credits if their base price is under $55,000, while trucks and SUVs can qualify with a price up to $80,000.

With a starting price of $62,999, the 2023 Lyriq couldn’t benefit from the $7,500 credit while it was considered a sedan, but it can now do so by being correctly classed as an SUV.

In addition to the price limit, a number of other criteria have to be met to allow a vehicle to qualify, especially since the Inflation Reduction Act was passed last year.

In a bid to protect the American Auto industry, the government now requires electric vehicles to be manufactured in North America and use battery minerals sourced from countries that have a free-trade agreement with the US.

Later this year, these criteria will change once again to require an even greater proportion of American content, which could limit the eligibility of many current models.

Source: MotorTrend

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