Cadillac Lyriq again eligible for full $7,500 tax credit
One of the aspects of the Inflation Reduction Act’s EV tax credit implementation is the increasing requirements for North American parts sourcing to qualify, at least for purchasing a vehicle rather than leasing. For critical mineral sourcing in the batteries, 50% must be “extracted or processed” in North America, which is up 10% over last year. The requirement for the amount of battery components manufactured in North America went up by 10% as well for 2024. And the changing requirements briefly caught out the Cadillac Lyriq, disqualifying it from the credit at the start of this year. But Cadillac has made some changes to fix the qualification, and it has buyers covered for vehicles built before the change.
Cadillac highlighted that it changed the sourcing of two components, which it calls “minor.” More specifically, they changed the sourcing for their battery separators and electrolytes for the batteries. These changes bring the Lyriq back into tax credit eligibility. And because the Lyriq is classified as an SUV, the price cap to qualify for the credit is $80,000. That will cover almost every configuration of the Lyriq, which has a base price of $62,090 including destination charge. But it is possible to crest that price with a fully maxed out example.
Now, these changes only apply to Lyriqs built after these changes. But since the start of the year, Cadillac has been offering $7,500 off the price of Lyriqs that don’t qualify. This will continue with examples built before the changes that are still on lots until they’ve been sold off. So regardless of the Lyriq you get, it should be be eligible for $7,500 off, one way or another.
Cadillac also has a couple other changes coming soon with a software update for all Lyriq owners. The update will be available in March, and it comes with Super Cruise and Adaptive Cruise Control improvements, along with revised controls for the Lyriq’s universal remote functions and the glove box access (because that’s opened via the touchscreen).
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