General Motors recently announced that the Cadillac Lyriq once again qualifies for the $7,500 US EV tax credit, a significant incentive for potential buyers.

This follows after a battery sourcing change by GM, which now allows the Cadillac Lyriq to meet the requirements set by the Department of Treasury. This change aligns with the regulations of, making the Lyriq a more affordable option for those looking to make an environmentally conscious vehicle purchase.

However, it’s important to note that this isn’t the first time the Lyriq has lost and regained its eligibility. Last year, the vehicle was temporarily ineligible for the tax credit, only to regain it later. This fluctuation in eligibility status is largely due to changes in production and supply chain management.

Other Models Included

The change also affects the Chevy Blazer EV. GM also anticipates the Chevrolet Equinox EV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Optiq, post-sourcing adjustment, will qualify for the full incentive.

The U.S. Treasury recently shared that it has reimbursed auto dealers approximately $135 million for advance point-of-sale consumer electric vehicle tax credit payments from the start of the year until February 6. This reimbursement is part of a program allowing dealers to apply tax credits at the time of sale, enhancing affordability for consumers.

How to Qualify

The eligibility criteria for EV tax credits stipulate that SUVs must not exceed a price of $80,000 and cars $55,000. This price cap ensures that higher-end models remain within reach for consumers seeking the federal tax incentive.

To qualify for the tax credit, buyers must meet specific income limits at the time of purchase. The caps are set at $300,000 for married couples filing jointly and $150,000 for single filers. Failure to meet these criteria requires repayment of the credit upon tax filing.

While this might seem like a minor detail, it has significant implications for the EV market. The $7,500 US EV tax credit makes electric vehicles more accessible to a broader range of consumers, thereby promoting the adoption of cleaner transportation options.

Image Source: CNN Philippines