EV Tax Credit Overview at Bob Moore Cadillac of Edmond

As electric vehicles continue to fill our roads, the federal government looks to continue this trend, offering a tax credit that applies to many EV, Hybrid, and Plug-In Hybrid models across the industry. Recently, the Inflation Reduction Act expanded access and extended the tax credit, ensuring more vehicles and more people can qualify for savings on their next EV purchase. It’s a very popular credit among buyers and automakers, so while we don’t anticipate it will last forever, we don’t see it going anywhere in the immediate future. As with all tax credits, it’s a little tricky to wade through all the details, including who qualifies, which models qualify, and how to claim the tax credit. We’ll go over the basics, including how it works, how you can benefit from it, and which Cadillac models qualify for the tax credit. To learn more about how you can save on your next EV purchase, contact Bob Moore Cadillac of Edmond.

How Does the Electric Vehicle Tax Credit Work?

The EV tax credit is divided into two main parts:

• $3,750 for vehicles that meet critical mineral requirements
• $3,750 for vehicles that meet battery component requirements

If a vehicle qualifies for both sections of the tax credit, you’ll get the maximum benefit of $7,500. If the vehicle qualifies for one but not the other, it will qualify for a minimum of $3,750. To qualify, the car must be bought new, and the MSRP cannot exceed $80,000 for SUVs, vans, or pickup trucks. The MSRP cannot exceed $55,000 for sedans and other smaller models. Some other basic requirements to note: the vehicle must undergo final assembly in the USA and weigh less than 14,000 lbs. When looking at requirements for who qualifies, there’s really one main qualifier. To take advantage of the credit, your modified adjusted gross income (AGI) cannot exceed:

• $300,000 for married filing jointly or a surviving spouse
• $225,000 for heads of households
• $150,000 for all others

There are some other minor caveats, but they’re a bit more niche. If you’re unsure if you or your vehicle qualify for the tax credit, it’s always best practice to contact the dealer directly. Bob Moore Cadillac dealership in OKC is always happy to help with any questions!

How to Claim the Federal Oklahoma EV Tax Credit

When you claim the tax credit, you must submit Form 8936 to the IRS. Aside from that, you can implement your tax credit in two ways. The first and most popular method is to get a time-of-sale credit from the dealer. This is essentially a discount from Bob Moore Cadillac OKC while you pass the tax credit onto them. This enables you to get the tax credit on the spot when you make your purchase. The other way to do it is the traditional route, filing Form 8936 when you file your tax return at the end of the year. This typically delays your benefit, canceling a portion of your tax burden or enabling the IRS to cut you a check. If you’re unsure how the EV tax credit will impact your tax situation, we recommend consulting an accountant. 

EV Tax Credit for the Cadillac Lyriq

Both the 2024 Cadillac Lyriq and 2025 Cadillac Lyriq qualify for the full $7,500 federal tax credit. The Lyriq is our only EV on the market right now, bringing Cadillac’s familiar style of luxury to a whole new market. The Lyriq offers two thrilling powertrains that both offer over 300 miles of driving range. The Cadillac Lyriq also sets the bar for EV SUVs, offering cutting-edge technology, a spacious, well-built cabin, and plenty of standard features. Visit Bob Moore OKC Cadillac to test drive the Lyriq or for more info on the Cadillac Lyriq tax credit!

This article is not financial advice. Before making decisions, we highly recommend consulting with a tax professional about the EV Tax Credit.