In mid-January 2023, the U.S. Treasury and IRS revealed new guidelines outlining the qualifications for electric vehicles eligible for the Federal EV tax credit. At the time, the Cadillac Lyriq was excluded from these qualifications, as its classification as a passenger vehicle, as opposed to a utility vehicle, rendered it ineligible for the tax credit. Now, after backlash from automakers and consumers, the Treasury has released updated classifications, meaning buyers of the Lyriq will able to take advantage of the $7,500 tax credit after all.
On February 3rd, 2023, the Treasury released a statement outlining its new standards for the Federal EV tax credit, which it uses to determine the MSRP limitations of EVs for tax credits made available as part of the Inflation Reduction Act. Now, the Treasury will follow the EPA Fuel Economy Labeling Standard rather than the EPA CAFE ratings it used previously.
“This change will allow crossover vehicles that share similar features to be treated consistently,” reads the statement from the Treasury. “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.”
In congruence with the EPA CAFE ratings, previously, the Treasury considered the Cadillac Lyriq a “passenger vehicle,” meaning that its retail price capped out at $55,000 in order to qualify for the tax credit benefits. The Lyriq’s starting MSRP is $59,990 for the 2023 model year and $58,590 for the newfound base Tech trim. The new classification guidelines, however, enable the Lyriq is now eligible for the tax credit.
Customers that qualify for the credit under the new EPA Fuel Economy Labeling classification standards, who purchased and placed into service vehicles since January 1st, 2023 , and who also satisfy 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.
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Bill Howland
I wonder if LYRIQs sold after mid march 2023 will also get the full $7500 or if it will be lowered by half, since it still uses Korean supplied Pouches for the traction battery.
James Tranthem
Bill,
Good luck getting your 2023 before 2024…
I ordered my 2023 Lyriq 18 months ago and have not seen it yet LOL!
Chris Brown
I am still shocked this was ever an issue from the beginning. You can LOOK at the Cadillac Lyriq and determine that it’s not a sedan – but apparently we are living in times when certain congressman/congresswoman actually believe the entire nation are as stupid to question what we see right before us with our OWN TWO EYES. Somebody in government or affiliated with it is afraid of GM’s EVs being superior to their own, perhaps.
This was a far reach and they STILL tried it. Why on earth would any member of congress try to keep a particular vehicle eligible for a tax credit from receiving one? I’m still scratching my head behind this entire story. Something is truly up!
Even without the tax credit, the Lyriq is hands down the best value and contender in its class. Now with the credit rightfully applied, I’m not sure if we’ll be able to get a deliver of one with so much demand. Supply and production has ramped up so the wait may be sooner than later.
I’m just so glad GM didn’t allow Elon’s friends within high places (food for thought) to ruin this for them. Again I think it’s WEIRD that somebody tried.
Bill Howland
Hi James,
So then when Cadillac Society said 30-100 days for delivery (a month ago now), they were just making it up?
James Tranthem
Bill,
You be the judge – after 18 months waiting and a call to Cadillac each and every month, a new “screen-reader” would give me another reason for the delay.
Finally, an e-mail arrived this week to report a delivery date 2/14/23 –
…however, I still bought my wife flowers just in case her Valentines gift does not arrive as promised!