GM wants US Treasury to review tax credits for Cadillac Lyriq EV
WASHINGTON, January 6 — common engine said Friday it wants the US Treasury to review the classification GM electricity Cadillac Lyriq to allow it to qualify for federal tax credits.
The Treasury and Internal Revenue Service have not classified the Lyriq as an SUV, meaning its retail price cannot be higher than $55,000 to qualify for a federal tax credit of up to $7,500 . The Lyriq currently starts at $62,990. SUVs can cost up to $80,000 to qualify, while cars, sedans, and wagons can only cost up to $55,000.
“We are addressing these concerns with the Treasury and hope that upcoming guidance on vehicle classification will provide much-needed clarity to consumers and authorized dealeras well as regulators and manufacturers,” GM told Reuters on Friday.
GM said Treasury should use the same criteria and processes as I have to go to school every day and the Department of Energy. “This promotes consistency in existing federal policy and clarity for consumers.”
GM will deliver only 122 U.S. Lyriq vehicles in 2022. A spokesperson for the Treasury Department defended the classification, saying the agency used it. energy saving standards “pre-existing — and long-standing — EPA regulations that manufacturers are already familiar with. These standards provide clear criteria to distinguish between passenger cars and SUVs.”
The Act passed by Congress in August reformed the electric vehicle tax credit and lifted the limit of 200.00 vehicles per manufacturer generated. Tesla and GM are not eligible for the EV tax credit effective January 1.
Tesla CEO Elon Musk tweeted this week that the electric vehicle tax rules have been “messed up”. Five-seat version of Tesla Model Y are not considered SUVs, while Model Y seven-seat versions are and may be eligible for credit.
The VolkswagenID.4 The IRS says it’s not classified as an SUV, while the four-wheel drive version does. VW declined to comment on Friday.
Last month, the Treasury said it would delay until March to issue proposed guidance on needed EV supplies. the battery. This means that some electric vehicles that don’t meet the new requirements have a short window of time to qualify for the full $7,500 tax credit before the battery rules go into effect.