2024 Cadillac Lyriq EV’s Federal Tax Credit Restored
On Jan. 1, new requirements took effect governing which vehicles qualify for the $7,500 federal electric vehicle tax credit. Predictably, the list of eligible vehicles shrank immediately — by more than half, in fact. But now, some of those vehicles are regaining their status, including the 2024 Cadillac Lyriq SUV.
Related: Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
To qualify for the EV tax credit currently, vehicles must be assembled in North America. Additionally, at least 50% of their battery components must be produced here, and at least 40% of the battery’s critical minerals must be extracted or processed in the U.S. or one of its free-trade partners. The requirements for battery component and mineral production are set to increase by 10% every year until 2027.
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Shop the 2024 Cadillac LYRIQ near you
Hacking the Sourcing Code
According to Reuters, Cadillac parent company GM says the temporary loss of eligibility was due to the sourcing of two minor battery components. The company accelerated a planned change in the sourcing of those components, allowing the Lyriq to regain eligibility for the $7,500 credit. GM also says the change will put the Cadillac Optiq, Chevrolet Equinox EV, Chevrolet Silverado EV and GMC Sierra EV on the right side of the cutoff when they go into production later in 2024.
To its, um, credit, GM offered a $7,500 incentive to buyers of Lyriqs produced between Jan. 1 and the date the sourcing change went into effect (the requirements for this credit’s eligibility deal with production date, not when the vehicle is purchased). The company says the incentive will remain in place for those vehicles, so all 2024 Lyriq buyers will pay equivalent prices.
Lyriq shoppers — and potential buyers of any EV — should also note that a recent change to the structuring of the credit means they no longer have to wait until tax time to claim their credit. As of Jan. 1, the credit can be transferred to the dealer and claimed by the buyer at the time of purchase.
More From Cars.com:
- All-Electric 2024 Cadillac Lyriq Gains New Equipment, Starts at $58,590
- What Does the EV Tax Credit Overhaul Mean for Car Shoppers?
- Electric Cars With the Longest Range
- Here’s Which Hybrids Qualify for Federal Tax Rebates
- Research the Cadillac Lyriq
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