By rewriting the definition of what counts as an “SUV,” the Biden administration will make EV tax credits available to a significantly larger number of U.S. motorists.
The original definition of SUV followed a fairly narrow formula that excluded many familiar vehicles, such as the Ford Mustang Mach-E and Tesla Model Y. Other vehicles that now will qualify include the new Cadillac Lyriq, while a number of other crossovers could be redefined as SUVs under the revisions.
The Inflation Reduction Act included significant changes to the EV incentive program, among other things setting a price cap of $80,000 for vehicles defined as SUVs. But the price cap is a much lower $55,000 for vehicles falling into the sedan, coupe, hatchback and wagon categories.
