The Cadillac Lyriq luxury EV crossover now qualifies for a federal clean vehicle tax credit following updated vehicle classification standards from the U.S. Treasury Department.
The U.S. Treasury Department released the updated classification standards earlier Friday. The standards are used to determine the applicable MSRP limitation for EV tax credits available under the Inflation Reduction Act.
Going forward, the U.S. Treasury Department has updated the qualifications to now follow the consumer-facing EPA Fuel Economy Labeling standard, rather than the EPA CAFE standard used previously.
“This change will allow crossover vehicles that share similar features to be treated consistently,” the U.S. Treasury Department states. “It will also align vehicle classifications under the clean vehicle credit with the classification displayed on the vehicle label and on the consumer-facing website FuelEconomy.gov.”
Previously, the qualification standards were based on existing EPA CAFE standards with regard to determining whether a vehicle was classified as a sedan, SUV, or some other type of vehicle. The classification was critical in that different classifications are tied to different MSRP limitations, with cars limited at $55,000, and utility vehicles limited at $80,000.
This is particularly impactful for the Cadillac Lyriq, which now qualifies for an EV tax credit under the updated classification standards. Prior to the update, the Cadillac Lyriq, which starts at around $60,000, did not qualify for a clean vehicle credit.
Customers who purchased and placed into service vehicles since January 1st, 2023 that qualify for the credit under the new EPA Fuel Economy Labeling classification standards, while also satisfying all other related requirements, can now claim the credit. All vehicles that were eligible under the MSRP limitations in place prior to the updated standards remain eligible.
Qualifying vehicles, including the Cadillac Lyriq, are eligible to receive upwards of $7,500 in federal tax credit with a new vehicle purchase or lease.
The U.S. Treasury Department states that it will release subsequent guidance on production requirements, including minerals and batteries, in March. Under the Inflation Reduction Act, qualifying EVs must meet requirements for production location and material sourcing.
As a reminder, the Cadillac Lyriq rides on the GM BEV3 platform, with production taking place at the GM Spring Hill plant in Tennessee. GM Ultium batteries and GM Ultium drive motors provide the motivation.
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Comments
Good news but not great news, by the time most Lyriqs are delivered the $7500 will likely be reduced to $3750 if that much. Cadillac could of sold 100,000 by March if they would of been on the ball.
Finally, government surrenders to capitalism at the cost of consumers. Tesla initiated price war by discounting Model Y and Ford following the trend. That’s good news for consumers, I & other commentators who are looking for EVs. Cadillac lyriq will have no choice if GM wants to win in this battle field for consumers’ benefits. However, it’s so sad to say that the government now no longer protects as it is supposed to be; instead it works for capitalism under pressure.
This will have little impact this year as they aren’t scaling up at all and can sell every one they make, but with stricter battery content percentage coming into play over the next few years, the rebate will be reduced.
They have been building them in bulk for months with thousands ready to go just haven’t delivered them until a few weeks ago. Their sales numbers will be significant for q1 of this year for the lyriq and probably the hummer as well.
This rebate should be at the point of sale, not as a tax rebate because only the wealthy pay more than $7,500 in Federal taxes. I do not pay Federal taxes, so I will not benefit.
I think it will be at point of sale in a year if I remember correctly.
You can benefit if you’re still working you just have to change your W4 for how many dependents on your paycheck. if you now claim 0-2 you can change it to 6, 8 or even 10. Then when you file taxes and claim what ever you’re legally allowed you will then owe and the tax credit will then work for you.
For a married couple, adjusted gross income would need to be at least $66,000 to have a $7500 tax liability. AGI is after the $27,700 standard deduction so income would need to be close to $94,000.
C’est une très bonne nouvelle pour la Lyriq . Il manque juste Québec . Le fédéral viens de me donner l’intérêt à cette voiture électrique. Même si Je suis anti auto électrique, j’aime trop conduire une auto à essence .
Chevy Blazer EV SS I “assume” will follow.
The rebate baked into price! This was 52-55 grand at first now 62-68. Should be on spot rebate. The devil is a lie cadillac
I’m not a liberal socialist and I think it’s a travesty that this $7500 rebate is applied to $60000+ vehicles to encourage their purchase by what, in fact, have to be “rich” people.
If affluent folks want electric vehicles, they will buy them without rebates.
These funds could be used to assist “hard working Americans” with helpful rebates on low price, economical new cars.
Force feeding the market is not the way to go.
As I understand it, the rebate is available at point of sale and can be used immediately as part of the down payment.
Starting in 2024 it is at point of sale.
As I understand it, the rebate is available at point of sale and can be used immediately as part of the down payment.
I would need this in writing! Lol is this before or after credit check ? I’ve already reseved 1 for this year but im rethinking seriously
Do we know what this means if we took deliver in Oct of 2021? Does the Lyriq now qualify or is the GM cap still in effect?
Jonathan should investigate and report if GM Financial will take the 7500 credit and pass it to lessees of Lyriqs in the form of a capital cost reduction as permitted by Internal Revenue Code 45W deduction, and now being done by other EV manufacturers captive finance arms.