GM says Cadillac Lyriq again qualifies for $7,500 US EV tax credit
Reuters
Published Feb 21, 2024 09:52AM ET
Updated Feb 21, 2024 10:40AM ET
By David Shepardson
WASHINGTON (Reuters) -General Motors said on Wednesday the automaker's Cadillac Lyriq is again eligible for a U.S. $7,500 electric vehicle tax credit after a battery sourcing change to address two minor components.
New U.S. Treasury battery sourcing rules took effect on Jan. 1 that cut by more than half the EVs eligible for tax credits. GM had offered $7,500 discounts to make up for the lost Lyriq credit.
The Chevy Blazer EV -- which is currently subject to a stop sale over a software issue -- also lost the credit. GM said last month it expects its Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV and Cadillac Optiq produced "after the sourcing change will be eligible for the full incentive."
GM sold 9,154 Lyriq vehicles last year in the United States.
On Jan. 24, Volkswagen (ETR:VOWG_p) said it had regained eligibility for its ID.4 EV electric vehicle for $7,500 tax credits.
SUVs must be priced up to $80,000 and cars $55,000 to be eligible for EV tax credits.
Last week, the U.S. Treasury said it has reimbursed auto dealers for about $135 million in advance point-of-sale consumer electric vehicle tax credit payments since the start of the year through Feb. 6.
The Internal Revenue Service has received more than 25,000 time of sale reports, including more than 19,500 - or 78% - with advance payment requests and approximately $135 million has been paid to dealers since Jan. 1, Treasury said.
Consumers must attest they meet income limits to qualify for the tax credit at time of purchase or they will need to repay the government when filing their taxes. For new vehicles, the adjusted gross income limit is $300,000 for married couples and $150,000 for individuals.
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Written By: Reuters
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