Does the Cadillac Lyriq qualify for the car loan interest deduction?
The 2025–2028 deduction turns on where a vehicle is finally assembled — not the badge. Here's where the 2025–2026 Cadillac Lyriq is built and what it means for your loan interest.
Assembly data: NHTSA vPIC + our verified plant lists · Not tax advice · Methodology
✓
PASS — assembled in the USA
The Cadillac Lyriq qualifies on the assembly test. Assembly is one of four gates — you also need a new vehicle, personal use, a 2025–2028 loan, and income under the phase-out.
The short answer
The Lyriq is Cadillac's electric crossover and it is assembled at GM's Spring Hill, Tennessee plant, so it passes the OBBBA final-assembly test. Being an EV neither helps nor hurts here — this deduction is about loan interest and assembly location, not the powertrain.
Where the Cadillac Lyriq is assembled
| Assembly plant | Location | Assembly test |
|---|---|---|
| Spring Hill Manufacturing | Spring Hill, TN | ✓ United States |
Confirm the other three tests
A US-assembly PASS is only the first gate. Each remaining condition has its own guide:
New & personal-use — used cars and leases don't qualify→ Loan dated 2025–2028 — refinancing keeps eligibility→ Income under the phase-out — run the MAGI calculator→
Frequently asked questions
Where is the Cadillac Lyriq assembled?
At Spring Hill Manufacturing in Spring Hill, Tennessee, alongside the Cadillac XT5. That is a US final-assembly point, so the Lyriq clears the test.
Do EVs qualify for the car loan interest deduction?
Yes. The OBBBA deduction turns on US final assembly and a qualifying loan, not on the type of powertrain. A US-built EV like the Lyriq is eligible on the assembly test.
Can I claim this and an EV credit together?
They are separate programs with separate rules and their own eligibility tests. Evaluate each one independently rather than assuming one implies the other.
Related vehicles
Cadillac Escalade ✓ Qualifies Cadillac XT5 ✓ Qualifies Tesla Model Y ✓ Qualifies Tesla Model 3 ✓ Qualifies Tesla Cybertruck ✓ Qualifies Honda Prologue ✕ Doesn't qualify
Advertiser disclosure
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A lower rate means less interest — and the qualifying interest is what's deductible. Compare partner lenders; checking won't affect your credit score.