‘Cadillac Lyriq Now Eligible for ,500 Tax Credit After Change in Supplier’

GM made an important announcement this week regarding the Cadillac Lyriq. The all-electric SUV will once again qualify for the Federal ,500 tax credit after the company made changes to its battery suppliers for two components. These changes were necessary to ensure that the Lyriq meets the criteria for the tax credit.

The Lyriq faced challenges following revised battery sourcing rules by the U.S. Treasury on January 1st, which impacted its eligibility for the tax credit. GM had been offering matching discounts to compensate for the loss of the credit, but ultimately decided to switch battery suppliers for two components in the battery. This change allowed the Lyriq to once again be eligible for the tax credit.

The reintroduction of the tax credit is timely for GM as the company aims to accelerate its EV revolution. The Lyriq sold 9,154 units in 2023, and GM is looking to increase those figures. The tax credit will play a significant role in achieving this goal.

In addition to the Lyriq, other GM models were also affected by the previous battery supplier, including the Chevrolet Blazer EV. The Blazer EV faced additional challenges with a stop-sale order due to software and reliability issues reported by buyers and media outlets.

Once the Blazer EV is ready for sale again, it, along with other GM EV models like the Chevrolet Equinox EV, Silverado EV, GMC Sierra EV, and the Cadillac Optiq, will benefit from the switch in suppliers. GM is optimistic about the impact of these changes on its EV lineup moving forward.