After temporarily losing availability for federal tax credits in early January, Cadillac has announced the LYRIQ is once again eligible for the total amount of up to $7,500. Additionally, some previously ineligible LYRIQs will receive a purchase incentive from Cadillac directly.
In late 2023, GM announced that starting January 1, 2024, its Chevy Blazer EV and Cadillac LYRIQ would lose eligibility for the US government’s clean vehicle credit following revised guidelines from the Treasury.
GM said the disqualification for tax credits was only temporary at the time, as the guidelines affected minor components in the LYRIQ and Blazer EV. The latter has more significant issues at the moment as GM has put a stop sale on the electric SUV following software issues it is still working to fix.
To offset the lost tax credit for LYRIQ purchases, Cadillac began offering its own $7,500 incentive to new buyers in the US. Today, however, GM has confirmed that the Cadillac LYRIQ has regained eligibility for up to $7,500 in federal credits but is not entirely abandoning those in-house incentives yet.
Cadillac LYRIQ regains tax credit eligibility
Cadillac confirmed the resuming of federal tax credit eligibility for the LYRIQ in an email to Electrek this morning, sharing that GM’s supply chain team quickly re-sourced the minor components in its Ultium battery cells that initially disqualified it. Cadillac’s global vice president, John Roth, spoke:
LYRIQ is the cornerstone of Cadillac’s electric future, delivering what luxury customers are looking for in an EV. We’ve seen significant demand for LYRIQ. Last year, it was the best-selling compact luxury EV SUV, capturing 33% of the segment. By offering this incentive, we expect to maintain momentum and reinforce our commitment to the future of EVs.
Cadillac also shared that the $7,500 incentives put in place while the LYRIQ was ineligible at the federal level will remain in place for any EVs built before GM revamped its supply chain. At the time of the original announcement of the LYRIQ’s temporary loss of tax credits, GM said all other EVs under the federal government’s price threshold would still qualify. That currently includes the lame-duck Chevy Bolt EV.
Upcoming EVs, including the electric Chevy Equinox, Silverado EV, GMC Sierra, and Cadillac OPTIQ, built after the sourcing change, are expected to receive the full $7,500 incentive.
