When Is A SUV NOT A SUV? Dealerships Totally Confused Over Biden’s New EV Tax Credit Classifications
Treasury and the IRS sought to help consumers with a new list of vehicles that may be eligible as of Jan. 1 or later. However, the list has raised concerns over how the vehicles are being classified.
Treasury did not classify the Cadillac Lyriq as an SUV, for example, meaning its retail price cannot exceed $55,000. The Lyriq, which Automotive News classifies as a midsize crossover, starts at $62,990.
The department used corporate average fuel economy, or CAFE standards, “which are preexisting — and long-standing — EPA regulations that manufacturers are very familiar with,” a Treasury spokesperson said. “These standards offer clear criteria for delineating between cars and SUVs.”