Cadillac has reinstated eligibility for the full federal tax credit of up to $7,500 on its LYRIQ electric vehicle, just a brief time after temporarily suspending the incentive in early January. Additionally, certain previously disqualified LYRIQ buyers will receive a purchase order incentive directly from Cadillac.
Starting in 2024, General Motors announced that its Chevrolet Blazer Electric Vehicle (EV) and Cadillac Lyriq models will no longer qualify for the US government’s tax incentive program, effective January 1, 2024, due to revised guidelines issued by the Treasury Department.
General Motors clarified that the disqualification for tax credits was temporary, specifically regarding minor technicalities affecting the 2022 LYRIQ and Blazer EV models’ compliance with regulations, rather than a permanent issue. Following a temporary pause in sales due to unresolved software issues, the electric SUV’s manufacturer has placed a cease order on new deliveries until further notice.
To make up for the incorrectly allocated tax credit on LYRIQ purchases, Cadillac introduced a private $7,500 reward program for new customers in the United States. Immediacy notwithstanding, General Motors has officially confirmed that the Cadillac LYRIQ is once again eligible for up to $7,500 in federal tax credits, while also not excluding internal incentives from being applied.
The Cadillac LYRIQ has regained its eligibility for federal tax credits, a boost for electric vehicle adoption. As of February 2023, the luxury SUV meets the necessary criteria to qualify for the $7,500 tax incentive, according to the US Department of Energy’s website.
Cadillac has officially reinstated federal tax credit eligibility for its LYRIQ electric vehicle, following an email announcement today. The company’s supply chain team has successfully sourced replacement components for the Ultium battery cells, which initially caused the disqualification from the program. As Cadillac’s Global Vice Chairman, John Roth took to the stage to share his thoughts.
As the flagship electric vehicle (EV) of Cadillac’s electrified portfolio, LYRIQ embodies the epitome of luxury and innovation, catering to discerning customers seeking a premium driving experience. The demand for LYRIQ has been incredibly strong and essential. Last year, the compact luxury EV SUV emerged as the top seller in its class, claiming a significant 33% market share. Through this initiative, we aim to sustain the pace and further solidify our commitment to shaping the future of electric vehicles.
Cadillac has clarified that the $7,500 incentives currently applied to the LYRIQ at the federal level will remain in effect for all electric vehicles manufactured prior to General Motors’ supply chain revamp. When GM initially announced the LYRIQ’s temporary absence from federal tax credits, it clarified that all other electric vehicles (EVs) under the government-set value threshold would still be eligible. The current lineup is anchored by the underwhelming Chevy Bolt EV, a legacy model that has failed to deliver on its initial promise.
Upcoming electric vehicles, including the Chevrolet Equinox, Silverado EV, GMC Sierra, and Cadillac OPTIQ, built after the switch in suppliers, are expected to qualify for the full $7,500 federal incentive.
