Cadillac Lyriq now qualifies for full $7,500 tax credit once again

One important aspect of the EV tax credit implementation under the Inflation Reduction Act is the increasing requirements for North American parts sourcing in order to qualify, particularly for vehicle purchases rather than leases. The updated regulations now state that for critical mineral sourcing in batteries, 50% must be “extracted or processed” in North America, a 10% increase from the previous year. Additionally, there has been a 10% increase in the requirement for battery components to be manufactured in North America for the year 2024.

These changing requirements initially caused the Cadillac Lyriq to be disqualified from the tax credit at the beginning of this year. However, Cadillac has taken steps to address the issue and ensure that the Lyriq now qualifies for the credit, providing peace of mind for buyers of vehicles built before the regulation change.

Cadillac specifically made changes to the sourcing of two components it identifies as “minor” – the battery separators and electrolytes. By making these adjustments, the Lyriq is once again eligible for the tax credit. As an SUV, the Lyriq falls within the price cap of $80,000 to qualify for the credit, covering most configurations of the vehicle with a base price of $62,090 including the destination charge.

It’s important to note that these eligibility changes only apply to Lyriqs built after the adjustments were made. For Lyriqs built before the changes, Cadillac is offering a $7,500 discount off the price to ensure that buyers still benefit from the savings. This offer will continue until all pre-adjustment Lyriqs are sold.

In addition to these updates, Cadillac will be rolling out a software update for all Lyriq owners in March. This update will include enhancements to Super Cruise and Adaptive Cruise Control, as well as revised controls for the universal remote functions and glove box access, which are operated through the touchscreen.

Stay informed and updated with the latest developments in the automotive industry. Watch the related video for more insights.