WASHINGTON — The U.S. Treasury is changing how it defines a sport utility vehicle Friday after car companies lodged complaints that some vehicles were wrongfully being boxed out of new electric vehicle tax credits.
The change is likely to be the difference between thousands of dollars in consumer discounts. Under new federal tax credits, SUVs, trucks and vans can cost up to $80,000 and still qualify for a $7,500 credit. Sedans, however, must stay under $55,000 to get the same price cut.
It will allow "crossover vehicles that share similar features to be treated consistently," the Treasury said in a statement Friday. Among the models affected by the change are General Motors Co.'s Cadillac Lyriq and Tesla Inc.'s Model Y.
