Jennifer Granholm’s Favorite EV Deemed Ineligible for Tax Credits Thanks to Chinese Parts
6th January 2024
The expensive electric vehicle that Energy Secretary Jennifer Granholm used during her ill-fated summer road trip is no longer eligible for federal tax credits thanks to a new rule that pulls subsidies for cars made with certain Chinese components.
As of Jan. 1, American buyers will no longer receive a $7,500 Biden administration tax credit when they purchase a Cadillac Lyriq, General Motors confirmed. At issue are Treasury Department battery sourcing rules, which forbid tax credits from going to electric vehicles that contain battery components from China and other foreign nations of concern. Those rules went into effect Monday.
The development comes as a blow to Granholm, who toured the country in a Cadillac Lyriq during her infamous June electric vehicle road trip, which was aimed at encouraging Americans to purchase electric vehicles. At one point, the pricey Cadillac—which can cost upwards of $60,000—developed a “hardware issue” that made it difficult to charge.