When is an SUV not an SUV? It depends on who you're asking — and it's a question consumers interested in the newly expanded clean vehicle tax credit should look at carefully.
, vehicles in service after Dec. 31, 2022 must meet MSRP limits based on body type and weight and must undergo final assembly in North America. The Treasury Department is set to release additional guidelines on battery source requirements in March, but for now, it's the vehicle classification requirement that's making some car companies uneasy. The potential confusion for consumers begins with how vehicles are classified.
That explanation may confuse potential electric car consumers, but a Treasury official stressed government regulations offer"clear criteria" for outlining differences between SUVs and cars. According to, some vehicles may not have the right measurements, angles, drivetrain , or minimum weight to meet the government guidelines to qualify as an SUV for the tax credit. The Lyriq doesn't meet the weight requirement, which is 6,000 pounds, nor does it have all-wheel-drive.
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