Too Expensive for Tax Credits? Feds Fix Cadillac Lyriq and Tesla Model Y Problem

When the United States government announced its new rules for tax credits for the purchase of a new electric vehicle, it based its pricing and

classification definitions on Corporate Average Fuel Economy, or CAFE standards. This resulted in certain SUV models, such as the

base Cadillac Lyriq and the two-row Tesla Model Y, being confusingly classified as sedans, which would have made them too

expensive to qualify for tax credits. This peculiar dilemma has been resolved by the United States Department of the Treasury, which

is now basing the federal EV tax credits on what the vehicle's EPA window sticker label classifies it as while it is on the dealer lot.