WASHINGTON — Basic Motors stated Friday it desires 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 Inner Income Service didn’t classify the Lyriq as an SUV, which means its retail value can’t be above $55,000 to qualify for as much as $7,500 in federal tax credit for electrical automobiles. The Lyriq, which Automotive Information classifies as a midsize crossover, at the moment begins at $62,990. SUVs will 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’re addressing these considerations with Treasury and hope that forthcoming steerage on car classifications will present the wanted readability to shoppers and sellers, in addition to regulators and producers,” GM instructed Reuters Friday.

U.S. Power Secretary Jennifer Granholm stated at CES late Friday that her company is engaged on tax classification problem with Treasury.

“We’re working in a really interlocked manner. Our of us and their of us are speaking on a regular basis,” Granholm instructed Automotive Information following her CES deal with. “Our coverage workplace is working immediately with Treasury to make it possible for this steerage is out and it is knowledgeable by stakeholders.”

GM stated Treasury ought to use standards and processes much like the EPA and Power Division. “This drives consistency throughout current federal coverage and readability for shoppers.”

GM delivered simply 122 U.S. Lyriq automobiles in 2022. A Treasury spokesperson defended the classifications, saying the company used gas economic system requirements “that are pre-existing — and longstanding — EPA rules that producers are very aware of. These requirements provide clear standards for delineating between automobiles and SUVs.”

Laws permitted by Congress in August reformed the EV tax credit score and lifted the 200,00-vehicle per producer cap that had made Tesla and GM ineligible for EV tax credit efficient Jan. 1.

Tesla CEO Elon Musk tweeted this week the EV tax guidelines had been “tousled.” The five-seat model of the Tesla Mannequin Y just isn’t thought of an SUV, whereas the Mannequin Y seven-seat model is and may qualify for the credit score.

The Volkswagen  ID4 compact crossover just isn’t categorised as an SUV, whereas the all-wheel drive model is, the IRS stated. VW declined remark Friday.

Final month, Treasury stated it might delay till March releasing proposed steerage on required sourcing of EV batteries. This implies some EVs that don’t meet the brand new necessities have a quick window of eligibility for the total $7,500 tax credit score earlier than battery guidelines take impact.

Automotive Information contributed to this report.