GM Now Wants US IRS to Reconsider EV Tax Credits for Cadillac Lyriq

General Motors (GM) is now asking the United States Internal Revenue Service to reconsider the electric vehicle (EV) tax credits eligibility of the Cadillac Lyric.

The American carmaker is now convincing the IRS that the Lyriq is an SUV, arguing that it is eligible for the incentive. It comes after the EV falls under the "Other" category, which includes sedans and wagons.

GM Cadillac and IRS EV Tax Credits

As per a recent report by Reuters, the IRS says that the Cadillac Lyriq is not an SUV, making it ineligible for federal tax credits of up to $7,500.

Given that the Lyriq failed to enter the SUV category, it has to retail lower than $55,000 for it to qualify for the EV incentives. However, the GM offering starts at a retail price of $62,990, making it above the requirements of the IRS for "non-SUV" EVs.

On the other hand, Reuters notes in its story that SUVs could go as high as $80,000, and they could still qualify for the tax credits.

As such, if the IRS considers the Lyric as an SUV, which it does not, it would be eligible for the all-new tax incentives.

GM Now Wants IRS to Reconsider EV Tax Credits for Cadillac Lyriq

Given that, the giant automaker is now attempting to fix things.

The spokesperson of GM spoke with Reuters to confirm that it is now working with the Treasury.

The American carmaker says they "are addressing these concerns with [the] Treasury and hope that forthcoming guidance on vehicle classifications will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers."

According to a report by Inside EVs, GM is now convincing the IRS that the Cadillac Lyriq falls under the SUV category instead of "Others."

It is worth mentioning that the IRS considers a vehicle an SUV as long as it weighs more than 6,000 lbs.

Given that, offerings like the Tesla Model Y Long Range failed to meet the requirements for the tax credit as it is too lightweight for the IRS to consider it an SUV.

The Tesla Chief Executive Officer (CEO), Elon Musk, questioned the move, saying that it seems that they are being "penalized" for producing a "mass-efficient" SUV. The billionaire further blurts out that it is "bizzare."

The IRS has yet to respond to GM. So it remains to be seen if Lyric will soon qualify for the incentive despite failing to meet the criteria for the EV tax credit. So customers might have to wait for that before the Cadillac EV gets an incentive.