EV Tax Credit Overview at Bob Moore Cadillac of Norman

For the past several years, the federal government has offered certain tax credits to car buyers, to make them more affordable and to lower emissions from cars across the board. In 2022, the Inflation Reduction Act expanded the tax credit, ensuring more vehicles qualify and extending the lifespan of the tax credit. As one of the most popular federal tax credits, we don’t see it going away any time soon. The tax credit applies differently to different models, including Hybrids and Plug-In Hybrids. At Bob Moore Cadillac of Norman, our sole EV offering is the Cadillac Lyriq, a two-row luxury EV SUV that’s the best-selling in the segment. We’ll explain how the tax credit works, how you can take advantage of it, and how it impacts the all-electric Cadillac Lyriq. For more details about how you can save on your next purchase, contact Bob Moore Cadillac Norman.

What is the Electric Vehicle Tax Credit?

The EV tax credit is broken into two parts, per the IRS:

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

If your EV or Hybrid matches both requirements, you’ll get the full $7,500 tax credit. If your vehicle only meets one of the requirements, you’ll get a minimum of $3,750 back towards your purchase. As with all tax credits, there are a couple of caveats. The vehicle must be bought new, and the MSRP can’t exceed $80,000 for SUVs, vans and pickup trucks. Sedans and other cars cannot have an MSRP that exceeds $55,000. There are other requirements, such as the vehicle having to undergo final assembly in the USA and weighing less than 14,000 lbs. Additionally, to qualify, 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

It’s always best to contact the dealer directly to determine whether your purchase qualifies for a full or partial tax credit. Our Norman Cadillac dealership is happy to answer any questions you have!

How to Claim the EV Tax Credit in Oklahoma

When you purchase an eligible vehicle, you can get your tax credit one of two ways. Both options require you to fill out Form 8936 with the IRS. The most popular option is to get a time-of-sale credit, essentially applying your tax credit as soon as you purchase your vehicle. This essentially puts the burden of dealing with the tax credit on the dealership. The other option is to file Form 8936 when you file your tax return for the year, ensuring you get your tax credit on your tax return instead of at the time of your purchase. While Bob Moore Cadillac of Norman can help you get the tax credit, any tax implication questions you have should always be run through an accountant. 

Cadillac EVs that Qualify for the EV Tax Credit

Since 2024, Cadillac has added several new electric vehicles to its lineup! The Cadillac LYRIQ led the charge, and from there, Cadillac has released multiple new EVs every year. While all Cadillac EVs meet the production requirements to qualify for the full $7,500 tax credit, some models are disqualified due to price. Notable Cadillac EVs that do not qualify for the EV tax credit include the Cadillac Escalade IQ and Escalade IQL. There are plenty of Cadillacs that do qualify for the full tax credit, though not every trim level will be eligible. As long as your EV SUV is below $80,000, you will qualify for the full tax credit.

Cadillac LYRIQ

The Cadillac LYRIQ paved the way for Cadillac’s entire EV lineup, offering a well-styled compact SUV that delivers plenty of range and features. Explore our breakdown of the LYRIQ to learn more!

Cadillac LYRIQ-V

The LYRIQ-V features a more potent powertrain than the base LYRIQ. If you value quickness in an EV, the LYRIQ-V is for you. Models under $80,000 will qualify. Click here to learn more about the Cadillac LYRIQ-V.

Cadillac OPTIQ

The OPTIQ is slightly smaller than the LYRIQ and positions itself as the most affordable Cadillac EV. As such, all of the OPTIQ’s trim levels qualify for the tax break. Use our research to learn more about the Cadillac OPTIQ.

Cadillac VISTIQ

The VISITIQ is the only three-row, EV Cadillac SUV that qualifies for the tax credit, as the Escalade IQ is too expensive. Even still, only some trim levels will qualify. Learn more about the Cadillac VISTIQ here.

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