Home » News » GM now wants the US IRS to reevaluate the Cadillac Lyriq's EV tax credits

GM now wants the US IRS to reevaluate the Cadillac Lyriq's EV tax credits

(Image Credit Google)
The Cadillac Lyric's eligibility for electric vehicle (EV) tax credits is now being reviewed by General Motors (GM) in a request to the Internal Revenue Service of the United States. In order to qualify for the incentive, the American automaker is currently persuading the IRS that the Lyriq is an SUV. It follows the EV, which is included in the "Other" category along with sedans and waggons. The IRS claims that the Cadillac Lyriq is not an SUV, disqualifying it from federal tax credits of up to $7,500, according to a report. The Lyriq must retail for less than $55,000 in order to be eligible for the EV subsidies because it was rejected for the SUV category. The GM model, on the other hand, has a starting retail price of $62,990, which puts it beyond the IRS's threshold for "non-SUV" EVs. [caption id="" align="aligncenter" width="1280"]GM wants U.S. Treasury to reconsider tax credits for Cadillac Lyriq EV - Times of India Image credit- Times of India[/caption] Since the IRS does not classify the Lyric as an SUV, it would qualify for the brand-new tax benefits. GM issues a recall for 140,000 Chevy Bolt EVs in the US and Canada due to a potential carpet fire hazard. GM now requests that the IRS reconsider the Cadillac Lyriq's EV tax credits. Given that, the massive manufacturer is currently making an effort to fix matters. Also Read: GM to Halt producing the Hummer EV in November! A GM representative confirmed to Reuters that the company is currently collaborating with the Treasury. According to the American automaker, they "are discussing these issues with [the] Treasury and anticipate that forthcoming guidelines on vehicle categories will give the critical clarity to consumers and dealers, as well as regulators and manufacturers." Inside EVs reported that GM is currently persuading the IRS that the Cadillac Lyriq belongs in the SUV category rather than the "Others" category. [caption id="" align="aligncenter" width="639"]GM wants U.S. Treasury to reconsider tax credits for Cadillac Lyriq EV Image credit- Yahoo News[/caption] It's important to note that the IRS classifies a car as an SUV if it weighs more than 6,000 lbs. Given this, products like the Tesla Model Y Long Range, which is too light for the IRS to classify as an SUV, failed to meet the conditions for the tax credit. Elon Musk, the CEO of Tesla, questioned the action and claimed that it appeared as though they were being "penalised" for creating a "mass-efficient" SUV. The multibillionaire continues, calling it "bizzare." The IRS hasn't replied to GM yet. Therefore, it is uncertain whether Lyric will soon be eligible for the incentive despite not meeting the requirements for the EV tax credit. Customers may therefore have to wait until then before the Cadillac EV receives a discount.

By Aaem Joshi

I am a Journalist who loves digging up stories that remain unheard. Strongly Believe in the knowledge of the social world.

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