Treasury and the IRS sought to assist shoppers with a brand new record of autos which may be eligible as of Jan. 1 or later. Nonetheless, the record has raised issues over how the autos are being labeled.

Treasury didn’t classify the Cadillac Lyriq as an SUV, for instance, that means its retail value can not exceed $55,000. The Lyriq, which Automotive Information classifies as a midsize crossover, begins at $62,990.

The division used company common gasoline financial system, or CAFE requirements, “that are preexisting — and long-standing — EPA laws that producers are very aware of,” a Treasury spokesperson mentioned. “These requirements provide clear standards for delineating between automobiles and SUVs.”

Common Motors mentioned it’s addressing these issues with Treasury and hopes that “forthcoming steering on car classifications will present the wanted readability to shoppers and sellers, in addition to regulators and producers.”

The Alliance for Automotive Innovation, which represents GM and different main auto firms, mentioned automakers ought to self-certify to Treasury what classification a car is marketed as, in line with feedback submitted to the division in November.

“There’s an awesome many which might be within the ‘different’ classification, and that is largely as a result of crossovers and SUVs inflicting a bit of little bit of consternation about how they’ll finally be seen by the federal government,” mentioned John O’Donnell, CEO of the Washington Space New Car Sellers Affiliation, including that he is “very optimistic” lots of the autos will find yourself with a “favorable” classification.

In the meantime, Cadillac sellers corresponding to Inder Dosanjh mentioned prospects concerned about shopping for the Lyriq are pissed off.

“Typically prospects assume we’re making these items up after which now we have to take them to the IRS web site and present it to them,” mentioned Dosanjh, CEO of Dosanjh Household Auto Group. “We’re spending numerous time explaining to prospects why Treasury thinks it is a automotive, not an SUV.”