General Motors announced on Wednesday that its Cadillac Lyriq is once again eligible for a $7,500 electric vehicle tax credit in the United States, following a battery sourcing change to address two minor components.
New U.S. Treasury battery sourcing rules, effective January 1, significantly reduced the number of EVs eligible for tax credits. To compensate for the lost Lyriq credit, GM had offered $7,500 discounts.
See also:Â Cadillac Lyriq Set for Major Upgrades in March, Promising Enhanced Luxury and Performance
The Chevy Blazer EV, currently under a stop sale due to a software issue, also lost the credit. GM stated last month that it expects its Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Optiq produced after the sourcing change to be eligible for the full incentive.
GM sold 9,154 Lyriq vehicles in the United States last year. Volkswagen also announced on January 24 that its ID.4 EV had regained eligibility for $7,500 tax credits.
To qualify for EV tax credits, SUVs must be priced up to $80,000, and cars up to $55,000. The U.S. Treasury reported last week that it has reimbursed auto dealers approximately $135 million in advance point-of-sale consumer electric vehicle tax credit payments since the beginning of the year through February 6.
See also:Â Cadillac Introduces Over-the-Air âVelocity Upgradeâ for Lyriq Electric SUV
The Internal Revenue Service has received over 25,000 time-of-sale reports, with more than 19,500, or 78%, including advance payment requests. Approximately $135 million has been paid to dealers since January 1, according to the Treasury.
Consumers must attest to meeting income limits at the time of purchase to qualify for the tax credit, or they will be required 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.
