WASHINGTON, Jan. 6 — General Motors said Friday it hopes the U.S. Treasury Department will reconsider the classification of GM’s electric Cadillac Lyric to allow it to qualify for a federal tax credit. .
The Treasury Department and the Internal Revenue Service do not classify the Lyriq as an SUV. That means he cannot exceed $55,000 in retail and be eligible for up to $7,500 in federal tax credits. Lyriq now starts at $62,990. SUVs are priced up to $80,000, while cars, sedans and wagons are priced up to $55,000.
GM told Reuters news agency: “We are working with the Treasury Department to address these concerns and hope that future guidance on vehicle classification will provide consumers, dealers, regulators and manufacturers with the clarity they need. I look forward to it,” he said.
GM said the Treasury Department should use standards and processes similar to those of the Environmental Protection Agency and the Department of Energy. “This will bring greater consistency across existing federal policies and greater clarity for consumers.”
GM has delivered just 122 US Lyriq vehicles in 2022. EPA Regulations that manufacturers are familiar with. These criteria provide clear criteria for distinguishing between cars and SUVs. “
A law passed by Congress in August reformed the EV tax credit, lifting the 200,000-vehicle cap per manufacturer that had excluded Tesla and GM from the EV tax credit starting January 1.
Tesla CEO Elon Musk tweeted earlier this week that the EV tax system is “a mess.” The 5-seat version of the Tesla Model Y is not considered his SUV, but the 7-seat version of the Model Y is eligible for credit.
According to the IRS, the Volkswagen ID.4 is not classified as an SUV, but the all-wheel drive version is. VW declined to comment on Friday.
Last month, the Treasury Department said it would delay issuing draft guidance on the necessary procurement of EV batteries until March. This means that some EVs that do not meet the new requirements will have a short period of time to qualify for the $7,500 tax credit before the battery rule takes effect.
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