One facet of the Inflation Reduction Act’s EV tax credit implementation is the increased need for North American parts sourcing to qualify, at least for purchasing a car rather than leasing one. For critical mineral sourcing in batteries, 50% must be “extracted or processed” in North America, up 10% from the previous year. Cadillac has made improvements to improve qualification and has consumers covered for vehicles built before the change.
More specifically, they changed the source of their battery separators and batteries’ electrolytes. These improvements restore Lyriq’s tax credit eligibility. Because the Lyriq is classified as an SUV, the maximum credit amount is $80,000. That will cover practically every configuration of the Lyriq, with a base price of $62,090 plus destination charges.
However, since the beginning of the year, Cadillac has offered $7,500 off the price of Lyrics that do not qualify. This will continue with examples created before the revisions remaining on lots until sold.
Cadillac will also make a few more modifications soon, including a software upgrade for all Lyriq owners. The update, which will be available in March, includes improvements to Super Cruise and Adaptive Cruise Control and improved controls for the Lyriq’s universal remote capabilities and glove box access.
