Up until January 1st, 2024, buyers of a new Cadillac Lyriq could take advantage of the $7,500 Federal EV tax credit, but the electric luxury crossover lost its eligibility for the credit due to updated guidelines released by the U.S. Treasury concerning the origin of some of the EV’s parts. Cadillac went straight to work to find alternate sources for parts that prevented it from being eligible for the credit, and now, the 2024 Lyriq is once again eligible.
“Today, Cadillac announced the full $7,500 consumer tax credit is once again available on Lyriq, after a pause of just a few weeks. In early January, Lyriq temporarily lost eligibility for the clean vehicle credit, due to the U.S. Treasury’s updated guidelines,” reads a Cadillac statement issued in conjunction with the news. “As a result, GM’s supply chain team moved quickly to pull ahead a sourcing change for two minor components, allowing Ultium Cells to build qualifying cells.”
During the time that the Federal EV tax credit was not available, Cadillac stepped up to offer a $7,500 discount on the Lyriq. The luxury marque stated that this discount will remain in effect toward the purchase of Lyriqs built before the sourcing change.
“Lyriq is the cornerstone of Cadillac’s electric future, delivering what luxury customers are looking for in an EV,” said John Roth, global vice president of Cadillac. “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.”
It’s worth noting that Cadillac’s in-house $7,500 discount may actually be a better deal for some buyers of the 2024 Cadillac Lyriq over the EV Tax Credit. That’s because this tax credit carries various eligibility requirements, and ultimately is a return of up to $7,500, meaning that some customers may not qualify for the full amount.
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