WASHINGTON — General Motors mentioned Friday it needs the U.S. Treasury to rethink classification of GM’s electrical Cadillac Lyriq to permit it to qualify for federal tax credit.
The Treasury and Internal Revenue Service didn’t classify the Lyriq as an SUV, that means its retail worth can’t be above $55,000 to qualify for as much as $7,500 in federal tax credit for electrical autos. The Lyriq, which Automotive News classifies as a midsize crossover, presently begins at $62,990. SUVs might be priced at as much as $80,000 to qualify, whereas automobiles, sedans and wagons can solely be priced at as much as $55,000.
“We are addressing these concerns with Treasury and hope that forthcoming guidance on vehicle classifications will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers,” GM informed Reuters Friday.
U.S. Energy Secretary Jennifer Granholm mentioned at CES late Friday that her company is engaged on tax classification situation with Treasury.
“We’re working in a very interlocked way. Our folks and their folks are talking all the time,” Granholm informed Automotive News following her CES tackle. “Our policy office is working directly with Treasury to make sure that this guidance is out and it’s informed by stakeholders.”
GM mentioned Treasury ought to use standards and processes much like the EPA and Energy Department. “This drives consistency across existing federal policy and clarity for consumers.”