Maximize Your Cadillac EV Investment

Maximize Your Cadillac EV Investment: Exploring the Clean Vehicle Tax Incentive

Your move into EV ownership just got an upgrade, courtesy of a recent expansion of eligible EVs to the IRS Clean Vehicle Federal Tax Credit.

As interest in electric vehicles grows, the U.S. has stepped up incentives to ease the transition to EV. First, the White House introduced a bill significantly increasing funding to the country’s charging infrastructure, and secondly, it revamped a federal EV tax credit under the Inflation Reduction Act. As part of the change that took effect January 1, 2023, a Cadillac LYRIQ may qualify for up to a $7,500 in tax credits.¹

Understanding the Clean Vehicle Tax Credit

The revamped tax credit includes new, qualified plug-in EVs or fuel cell electric vehicles (FCVs) purchased between 2023 and 2032 under Internal Revenue Code Section 30D. For those who qualify, you may receive a credit of up to $7,500.

Whether your purchase qualifies and for what amount depends on a number of factors, including:

• The total cost of the vehicle
• Where the vehicle will be used
• Your modified adjusted gross income (AGI)
• Where the vehicle is assembled and the source of the battery components

How Do I Know If I Qualify for the Credit?

Your personal eligibility to claim the Section 30D tax credit depends on your own individual circumstances, including whether your adjusted gross income for the current or preceding taxable year exceeds the income thresholds of the Clean Vehicle Credit.  (The IRS provides important information here.) You should consult with your tax, legal or accounting professional for personal eligibility based on household income.

Existing Cadillac LYRIQ owners may enter the VIN number of your LYRIQ here for more guidance.
Are There Any State or Local Tax Incentives Available?

In addition to the federal Clean Vehicle Tax Credit, it is worthwhile to explore state and local incentives available in your area. For instance, California residents may qualify for additional rebates under the Clean Vehicle Assistance Program. You may also qualify for tax credits and rebates related to the purchase and/or installation of an EV charger, depending on where you are located.

Investing in an electric vehicle offers several financial advantages beyond the Clean Vehicle Tax Credit. While the upfront cost of an electric vehicle may be higher than that of a conventional vehicle, the long-term savings can be substantial. With lower operating costs, reduced maintenance expenses, and potential resale value, owning an electric vehicle can prove cost-effective over time.
Interested in learning more? Read more about Cadillac’s electric future and prequalify for financing by applying now.

¹Credit amount and eligibility are subject to change. You should consult with your own tax, accounting or legal professional or advisor to confirm your eligibility for the Clean Vehicle Credit or if you have questions regarding your qualification to claim the credit. This information does not constitute tax, accounting, or legal advice.

By Jessica Llanes, Cadillac Financial

Jessica Llanes is an off-road adventurer, EV enthusiast and bon vivant raised in New Orleans. When she’s not traveling, she enjoys sharing a homecooked meal with friends, curling up with an Agatha Christie novel, or binge-watching classic episodes of Top Gear (or Top Chef).