Shulou(Shulou.com)11/24 Report--

CTOnews.com, January 7 (Reuters)-General Motors said on Friday that it hoped the U.S. Treasury Department would reconsider the Cadillac Lyriq classification to make it eligible for a federal tax credit.

The Treasury and IRS do not classify Lyriq as SUV, which means its retail price cannot exceed $55000 to receive a federal tax credit of up to $7500, while Lyriq currently starts at $62990 and SUV can reach $80000.

GM said: "We are addressing these issues with the Treasury and hope that the upcoming guidance on vehicle classification will provide consumers and dealers, as well as regulators and manufacturers, with the clarity they need."

GM said the Treasury should use standards and procedures similar to those of the Environmental Protection Agency and the Department of Energy, which "will promote consistency in existing federal policies and provide clear information to consumers".

A spokesman for the Ministry of Finance defended its classification basis, saying that the agency used fuel economy standards, "which are pre-existing-and long-standing-EPA regulations that manufacturers are very familiar with. These standards provide clear criteria for the division of cars and SUV."

Legislation approved by Congress in August reformed the electric vehicle tax credit and lifted the ceiling of 200000 vehicles per manufacturer.

Some netizens also questioned the Ministry of Finance's tax breaks for electric cars, saying that a car with a gasoline engine and an electric range of only 21 miles received a $7500 tax credit for electric cars, while the pure electric car Model Y with a range of 330mph did not. In response to the tweet, Elon Musk, chief executive of Tesla, said the tax rules for electric vehicles were "a mess".

CTOnews.com learned that Tesla's five-seat version of Model Y is not considered by the US Treasury as SUV, while the seven-seat version of Model Y is SUV, which can qualify for credit. In addition, Volkswagen's ID.4 is not classified as SUV, while the all-wheel drive version belongs to SUV.

Last month, the US Treasury said it would postpone the release of proposed guidance on the procurement of batteries for electric vehicles until March. This means that some electric vehicles that do not meet the new requirements have a short chance of getting a full tax credit of $7500 before the battery rules come into effect.

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