Following a brief period of uncertainty, the 2024 Cadillac Lyriq is again eligible for the full $7,500 federal consumer tax credit. The U.S. Treasury Department updated its guidance in December 2023 for the EV tax credit based on “foreign entity of concern” (FEOC) rules regarding manufacturing. Under the new guidance, if an EV sold in the U.S. has battery components sourced from geopolitical rivals of the U.S. named explicitly by the government (China, Russia, and Iran, among them), it doesn’t qualify for the tax credit.
The Cadillac Lyriq and Chevrolet Blazer EV were affected when the new guidance dropped. GM acted fast and initiated a sourcing change for two minor components for Ultium Cells. The General announced on Wednesday that the Lyriq is once again eligible for the tax credit that entices so many new EV buyers. General Motors accurately predicted that the suspension of the Lyriq’s tax credit eligibility would be temporary. Cadillac reacted by offering $7,500 off the purchase price of Lyriq models sold in the interim. This incentive will still be available for vehicles built before the sourcing change.
The Chevy Blazer EV will presumably qualify for the tax credit as well, but it’s still suffering a stop-delivery order as of this writing. It’s worth considering that GM’s $7,500 discount may be a better deal than the federal tax credit. The tax credit has many strings attached via eligibility requirements. The discount from GM is just that: $7,500 is knocked off of the price tag.
“Lyriq is the cornerstone of Cadillac’s electric future, delivering what luxury customers are looking for in an EV,” said Cadillac global vice president John Roth in a statement. “We’ve seen significant demand for Lyriq. Last year, it was the best-selling compact luxury EV SUV capturing 33 percent of the segment. By offering this incentive, we expect to maintain momentum and reinforce our commitment to the future of EVs.”
Regaining the full federal tax credit under the new, stricter guidance gives the 2024 Cadillac Lyriq a competitive edge over most of its rivals. The new guidance hits many electric vehicles in the U.S. market since there’s a significant overlap between America’s geopolitical rivals and countries rich in rare-earth minerals needed for EV battery production.
As an electric luxury SUV with a sub-$60k starting MSRP further driven down by the tax credit, the 2024 Cadillac Lyriq is arguably a premium EV with no direct rivals in its price range. A few similar (and pricier) electric luxury SUVs that don’t qualify for the tax credit include the Mercedes-EQ EQE SUV, Audi Q8 e-tron, and BMW iX, all starting at around $75k or higher. The Tesla Model X still qualifies, but only in the base model with no options because of the $80k MSRP cap.
The Lyriq delivers a unique blend of luxury, range, practicality, and value that none of its rivals can match, and its renewed eligibility for the federal tax credit makes it an even better buy.
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Comments
I a, curious if this Lyriq is available for Americans to purchase? Where I live there are television commercials for this Lyriq, but not in English, not a word, in the middle of an English broadcast I get a foreign language ad for this car. Are Americans allowed to buy them?
The US doesn’t have an official language so not sure why you think people who speak “a foreign language” aren’t Americans.
Just wondering:
Huh?
Assuming you’re referring to TV ads, it sounds like it’s an issue with your provider/ streaming service to me. That’s who schedules tje commercial breaks.
What “foreign language” is being used for these ads?
Assuming your question isn’t rhetorical, then yes… I live in California. Got mine about 2 weeks ago. So far, I love it. A Level 2 charger is being installed in the garage at the end of the month (with a $1,500 labor discount from QMerit, GM’s designated partner to do this) and I expect it will improve what’s been an impressive experience so far.
If you got your Lyriq two weeks ago did you receive the $7500 GM cash off? If so, can you still qualify for the Federal $7500 tax credit? If the answer is yes, congratulations for hitting the jackpot.
$7500 GM vehicle rebate only. Lyriq was temporarily dropped from the Tax Credit program due to a couple of “minor battery components” from China and GM stepped up. I actually preferred the direct rebate better than the tax credit. GM also added a $5k “loyalty rebate” (we traded in a 2014 SRX for the 2024 Lyriq L2 RWD sunroof & Supercruise). So – nearly a “jackpot”! Still loving the car…
Taxpayers get hit again! They subsidize the manufacturer, then they subsidize the purchaser & then they subsidize the installation of the charging system….WHENT HE HELL IS THIS GOING TO END?🤬
Federal tax credits totaled nearly $50B in 2020. Many large corporations, Nike, HP, FedEx, Salesforce, ADM, Con Edison, Whirlpool, and Dish Network among them, paid zero in federal tax on their profits that year, and indeed many got refunds. As a whole, the fossil fuel industries get about $20B/yr in tax breaks.
Nice work if you can get it.
Now save that energy when talking about the huge tax breaks / credits oil and gas companies receive from the US that the consumers and taxpayers never benefit from.
Not to mention the cost of the military in the MEast to keep the water ways open.
Only a fool complains about getting their own tax money returned to them by the government, which is exactly what this tax credit is. Maybe you just love paying taxes?
Paid cash for the car. We would not have received the entire $7,500 tax credit because our federal tax liability was so low.
Of you had waited for 2024, your tax liability wouldn’t matter.
About a week ago, all Lyriqs are again covered by the tax credit. But if one pays no taxes, there is nothing on which to crest the tax credit. The entire GM rebate, for me, was applied to the price of the car. Our tax situation will probably remain similar to 2023 for a few more years. I really didn’t need the tax credit or the rebate, but I’ll take whatever GM wants to give me.
With the point of sale tax credit in 2024 your tax liability doesn’t matter. You only have to pay it back if your income exceeds the thresholds.
When are subsidies for fossil fuels going to end?
I’d have one tomorrow if I could. Still on the pricey side for me and my job requires fairly long road trips. But I’m looking forward to the day my money won’t end up at the Kremiln or in Rhyiad.
I see quiet a few Lyriq around town . They look very good in the wild.
I purchased my Lyriq in March 2023. Was clearly enticed by the $7500 rebate but just informed by accountant that I didn’t qualify for the rate because of income. Is that possible? Did my dealer screw me over by not offering the discount up front?
Could use some guidance on this one.
There are income limits. You don’t qualify if you make more than $150k, single filer, or $300k joint.
Time of purchase discounts via the tax credit were not available in 2023.