{"id":39822,"date":"2023-01-08T00:03:38","date_gmt":"2023-01-08T05:03:38","guid":{"rendered":"https:\/\/autosector.com\/?p=39822"},"modified":"2023-01-08T00:03:38","modified_gmt":"2023-01-08T05:03:38","slug":"cadillac-lyriq-ev-tax-credit-car-suv","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=39822","title":{"rendered":"GM wants U.S. Treasury to reconsider tax credits for Cadillac Lyriq EV"},"content":{"rendered":"

WASHINGTON, Jan 6 \u2014 General Motors<\/a> said Friday it wants the U.S. Treasury to reconsider classification of GM’s<\/a> electric Cadillac<\/a> Lyriq to allow it to qualify for federal tax credits.<\/p>\n

The Treasury and Internal Revenue Service did not\u00a0classify the Lyriq\u00a0as an SUV, meaning its retail price cannot be above $55,000 to qualify for up to $7,500 in federal tax credits. The Lyriq currently starts at $62,990. SUVs can be priced at up to $80,000 to qualify, while cars, sedans and wagons can only be priced at up to $55,000.<\/p>\n

“We are addressing these concerns with Treasury and hope that forthcoming guidance on vehicle classifications will provide the needed clarity to consumers and dealers<\/a>, as well as regulators and manufacturers,” GM told Reuters Friday.<\/p>\n

GM said Treasury should use criteria and processes similar to the Environmental Protection Agency<\/a> and Energy Department. “This drives consistency across existing federal policy and clarity for consumers.”<\/p>\n

GM delivered just\u00a0122 U.S. Lyriq vehicles\u00a0in 2022. A Treasury spokesperson defended the classifications, saying the agency used fuel economy<\/a> standards “which are pre-existing — and longstanding — EPA<\/a> regulations that manufacturers are very familiar with. These standards offer clear criteria for delineating between cars and SUVs.”<\/p>\n

Legislation approved by Congress in August reformed the EV tax credit and lifted the 200,00-vehicle per manufacturer cap that had made Tesla<\/a> and GM ineligible for EV tax credits effective Jan. 1.<\/p>\n

Tesla Chief Executive Elon Musk<\/a> tweeted this week the EV tax rules were “messed up.” The five-seat version of the Tesla Model Y<\/a> is not considered an SUV, while the Model Y<\/a> seven-seat version is and can qualify for the credit.<\/p>\n

The Volkswagen ID.4<\/a> is not classified as an SUV, while the all-wheel drive version is, the IRS said. VW<\/a> declined comment Friday.<\/p>\n

Last month,\u00a0Treasury said it would delay\u00a0until March releasing proposed guidance on required sourcing of EV batteries<\/a>. This means some EVs that do not meet the new requirements have a brief window of eligibility for the full $7,500 tax credit before battery rules take effect.<\/p>\n

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