New EV tax credits: Car dealers ‘don’t have the answers’

The Treasury Department and the IRS have tried to provide consumers with a new list of vehicles that may be covered after January 1st. But the list raises concerns about how the vehicles are classified.

For example, the Treasury Department did not classify the Cadillac Lyriq as an SUV, so its retail price cannot exceed $55,000.Lyric car news Classified as a midsize crossover, it starts at $62,990.

A Treasury Department spokeswoman said the ministry used corporate average fuel economy, or CAFE standards. This is “an existing and long-standing EPA regulation that manufacturers are very familiar with,” he said. “These criteria provide clear criteria for distinguishing between cars and SUVs.”

General Motors said it is working with the Treasury Department to address these concerns, adding: “We hope our upcoming guidance on vehicle classification will provide consumers, dealers, regulators and manufacturers with the clarity they need. There are,’ he said.

The Alliance for Automotive Innovation, which represents GM and other major automakers, said in comments submitted to the Treasury in November that automakers would have to self-certify to the Treasury what classification their vehicles are sold under. says there is.

Chief Executive John O’Donnell said: “There are so many cars that fall into the ‘Other’ category that it may cause a bit of surprise as to how crossovers and SUVs will ultimately be viewed by governments. It’s the main reason,” he said. The president of the Washington Area New Auto Dealers Association said he was “very optimistic” and added that many vehicles would end up in the “favorable” classification.