Tax rebate apply to the Lyriq?

This topic has 12 replies, 7 voices, and was last updated 1 year, 6 months ago by gp1200x.

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October 24, 2022 at 7:16 am #93428

fdashiell
Participant

Does the $7500 tax rebate apply to the Lyriq? If NO for 2022 and YES for 2023 will that affect deliveries in December 2022?

November 14, 2022 at 9:47 am #93611

hotrodsrus
Participant

No for 2022 and maybe for 2023. 3750 because of battery sourcing. And, perhaps it may affect December deliveries if DEs arrive late in the month. Will selling dealer “hold” the delivery until Jan 1st?

November 15, 2022 at 8:16 pm #93638

lochwoode
Participant

Greetings:
I’m new to the Cadillac Society and the Lyric forum. I’m presently leasing a 2021 XT5 and have submitted the $100 deposit for a 2024 Lyric. I’m not very familiar with the $3,750 tax rebate. Is that only going to be offered for the 2023 model year or do we think that the IRS will extend the offer indefinitely?

November 15, 2022 at 10:27 pm #93639

fdashiell
Participant

No rebate at all if you take delivery in 2022 because GM has sold too many EVs. New law takes effect on deliveries after 12/31/2022, but we dont know for sure how much it will be for the Lyriq. Model year of car is irrelevant; delivery date determines one of the criteria. There are also other criteria, including income of buyer and source of battery.

January 8, 2023 at 12:14 am #94230

hotrodsrus
Participant

Well, so now it appears both GM and Tesla are “challenging the IRS rulings that the Lyriq (GM example) doesn’t qualify as a SUV and consequently is limited to the 55K passenger cap…we shall see how this develops Tesla has similar issues with various models.

January 8, 2023 at 11:19 am #94231

Raymond J Ramirez
Participant

That tax rebate should have been a sales rebate because many don’t pay that amount of taxes. I am retired abd I never pay Federal taxes so I will lose that credit.

January 8, 2023 at 12:44 pm #94232

fdashiell
Participant

Well just have a good friend or son/daughter buy it with your money, then transfer title to you. At tax time they get the rebate which they split with you for an agreed amount say $6500/$1000. They get $1000 for helping you. Maybe they will inherit the car as well some day!

January 8, 2023 at 4:50 pm #94233

fdashiell
Participant

That was somewhat facetious. More seriously, it seems unfair to limit the tax incentive to the tax owed that year. Just because you have a low tax bill in one year should not exclude you from the incentive. You could have losses that reduce your bill that year. You should get a tax credit not limited to the tax owed for a particular year. That means in some cases the $7500 comes in a refund. This feature of the IRS notice should also be appealed.

January 20, 2023 at 7:35 am #94458

Christy_Garibay
Participant

I think that this will not happen, or at least no one wants to do it.

January 20, 2023 at 10:46 am #94460

hotrodsrus
Participant

It appears the issue is still not resolved and many of us are hoping for further clarification by March 1st. Waiting and watching.

February 26, 2023 at 10:57 am #95213

RW72
Participant

Raymond Ramirez, I’m not an expert but what I plan on doing is taking a withdraw from 401K and not have any taxes taken out so when I file my taxes next year I will owe up to $7500 and tax credit will take care of that. Another way would be to stop taxes from being taken out of SS or pension for the rest of the year to create a tax liability for next year, may not create $7500 but what ever it does will help.

February 26, 2023 at 6:48 pm #95218

fdashiell
Participant

You wouldnt have to take it out of your retirement bundle. Roll into a Roth IRA within 60 days to keep it invested. No withdrwls from a Roth are taxed, and they grow tax free. There is no required minimum distribution either from a Roth.

April 22, 2023 at 11:58 pm #96739

gp1200x
Participant

I think the way it would work…assuming no IRA sales…is that it is a tax credit regardless of how much you have already paid in for the year. So if your tax liability for the year is $6,000 (regardless of you possibly already paying in $5500) then your credit would go against the $6000 making it zero and you would lose out of the remaining $1500 availble ccredit. The $5500 you already paid in taxes during the year would be a refund back to you for that tax year. To get the full tax credit, you would need to make sure your fed tax bill for the year is 7500 or more…meaning convert some trad IRAs to Roth IRAs as mentioned above.
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