Cadillac Lyriq Reclaims $7,500 Federal Tax Credit Eligibility

Feb 21, 2024 08:10 PM EST

A BLACK CADILLAC CAR PARKED ON THE STREET — (Photo : PEXELS/Collin Nederhood)

On Wednesday, General Motors said that the Cadillac Lyriq is once again eligible for the $7,500 US electric vehicle tax credit. The model regains the tax credit eligibility because GM changed the battery's source to fix two small components and make sure the car complies with the new U.S. Treasury regulations that went into effect on January 1.

Cadillac Lyriq: $7,500 Federal Tax Credit Eligible

The new rules had initially reduced the number of EVs eligible for tax credits by more than half. In response, GM had provided $7,500 discounts to compensate for the lost Lyriq credit. With the sourcing change for two minor components, the electric Caddy has once again secured its tax credit eligibility.

As per EVs InsideEVs Global report, the Cadillac Lyriq, a stylish addition to the luxury electric vehicle market, can now offer customers the $7,500 federal tax credit at the point of sale, following its temporary loss of eligibility at the end of 2023 due to updated Inflation Reduction Act guidelines.

The automaker's announcement signals a positive development for those interested in this sleek and environmentally friendly vehicle.

The article also mentioned the difficulties General Motors has had implementing EVs. battling production hold-ups, software bugs, and lower-than-expected demand. But in the middle of all of this, the Cadillac Lyriq shines like a ray of optimism.

This model, which saw respectable sales the previous year, now has the potential to save up to $7,500. The EPA estimates that the entry-level Tech variant of the 2024 Lyriq can go 314 miles with rear-wheel drive and 307 miles with all-wheel drive.

One can purchase this model with a base price of $58,590. The Lyriq is positioned as a serious competitor in GM's array of electric cars because to these qualities. To secure the Cadillac Lyriq's reinstated eligibility for the tax credit, General Motors took the proactive step of locally sourcing two minor battery components.

During the period when the Lyriq temporarily lost its eligibility, GM provided a $7,500 discount to maintain customer interest and competitive pricing. Furthermore, the automaker has assured that vehicles manufactured during that period will still receive the cash incentive, demonstrating a commitment to customer satisfaction and support for its electric vehicle offerings.

As reported by Reuters, the Chevy Blazer EV, currently facing a stop sale due to a software problem, also experienced a loss of the tax credit. GM indicated in the previous month that it anticipates the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Optiq manufactured "following the sourcing modification" to qualify for the complete incentive

About Cadillac Lyriq

In its second year of production, the 2024 Cadillac Lyriq has expanded its offerings, presenting a range of configurations beyond those available in the 2023 model. The new Tech trim serves as the foundational option, complemented by the 1, 2, and 3 trim levels, each offering Luxury and Sport styling themes.

As a five-passenger midsize electric SUV, the Lyriq provides a comprehensive range of features, power capabilities, and styling options across its various trims, catering to diverse preferences and needs of potential buyers.

Based on Car and Driver's assessment, the 2024 Cadillac Lyriq boasts a hushed interior, impressive battery capacity, and stylish design both inside and out. On the downside, it prioritizes comfort over driving excitement, the software interface may require some adjustment, and the single-motor model lacks strong acceleration. In conclusion, the Lyriq SUV is described as a sleek electric vehicle with the essence of a DeVille, although not quite reaching the performance levels of a Blackwing.