The all-electric Cadillac Lyriq recently lost eligibility for the $7,500 Federal EV Tax Credit, thanks to new guidelines released by the U.S. Treasury that took effect on January 1st, 2024. To keep sales of the EV rolling in the interim, the luxury marque is offering a $7,500 cash allowance of its own toward the purchase of the Lyriq, although it comes with a disclaimer: qualifying Lyriq models must “exclude R7T.” To find out exactly what that means, Cadillac Society reached out to Cadillac for answers.
The Lyriq R7T production code is not tied to any current feature or package offered on the Lyriq. Instead, it is a code used internally to denote vehicles that are eligible for the Federal EV Tax Credit, and are therefore not eligible for Cadillac’s $7,500 cash offer. In other words, the only Cadillac Lyriq models eligible for Cadillac’s $7,500 discount (as opposed to that of the U.S. federal government) exclude the R7T code.
“GM is well positioned for our dealers and customers to take advantage of the clean vehicle tax credit,” a Cadillac spokesperson tells Cadillac Society in a statement. “After reviewing Treasury’s long-awaited proposed guidance, the Cadillac Lyriq will temporarily lost eligibility for the clean vehicle credit on January 1st, 2024 because of two minor components. GM has pulled ahead sourcing plans for qualifying components in early 2024 and will support our dealers and customers, and importantly, keep EV momentum.”
Specifically, the Cadillac Lyriq lost its Federal EV Tax Credit eligibility due to battery components sourced from U.S.-labeled “foreign entities of concern (FEOC)”, which include China, Russia, North Korea and Iran. Models with components from these countries do not qualify for the federal government’s full $7,500 EV tax credit. However, once Cadillac sources these parts from other countries, the Lyriq will become eligible once again.
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There's also a separate $1,000 lease incentive.
This piece of history doesn't seem to have a future.
A separate low-interest financing offer is also available.
Due to increased incentive spending.
The rear glass may need to be replaced.
