Cadillac Lyriq again qualifies for $7,500 federal tax credit

Cadillac Lyriqs now being produced are eligible for the $7,500 federal government clean-vehicle tax incentive after the electric SUV lost eligibility following changed requirements at the start of the year.

Starting Jan. 1, the Tennessee-built Lyriq as well as the Chevrolet Blazer EV lost eligibility for the subsidy alongside dozens of other models. The U.S. Treasury Department and Internal Revenues Services in December released guidance to clarify rules around eligible vehicles under the Inflation Reduction Act that was focused on encouraging plug-in vehicle adoption and domestic manufacturing. They disqualify EVs with a specific foreign-sourced battery content.

General Motors Co. Chief Financial Officer Paul Jacobson on Wednesday gave the update about the Lyriq at Citibank NA's Global Industrial Tech and Mobility Conference. The Environmental Protection Agency's fuel economy website as of Wednesday morning didn't list the vehicle as eligible, though the vehicle identification number ultimately designates qualified vehicles.

"I'm pleased to report that today all of the Cadillac Lyriqs that we're producing are now compliant," Jacobson said. "It's an example of how we can be nimble within our supply chain and within our allocations to make sure that we're maximizing the benefits."

GM has been offering a $7,500 incentive to customers on Lyriqs that didn't qualify for the incentive. Vehicle leases also are eligible for the incentive, but it goes to the financial institution through which the lease is taken, and that company may pass on the credit to the lessee.

There were 13 nameplates that were eligible for the tax incentive on Jan. 1. The Volkswagen ID.4 since has been added, as well.

At Ford Motor Co., the Mustang Mach-E SUV, Ford E-Transit commercial van and Lincoln Aviator Grand Touring plug-in hybrid also lost eligibility for their respective incentives. Ford on Tuesday dropped pricing on 2023 Mach-E vehicles.

bnoble@detroitnews.com

@BreanaCNoble