On Friday, the Treasury Department updated the way it classifies vehicles eligible for the $7,500 EV tax credit as part of the Inflation Reduction Act (IRA). The change should make more vehicles — including the Model Y — eligible for the credit, as certain SUV crossovers are no longer placed in the same category as sedans.

Previously, some Model Y models, in addition to the Cadillac Lyriq, were not eligible for the EV tax credit because their sticker prices exceeded the $55,000 maximum MSRP for sedans.

But with the government using the Environmental Protection Agency’s (EPA) Fuel Economy Labeling standard instead of the EPA’s Average Fuel Consumption (CAFE) Standard to classify vehicles, the Model Y and Cadillac Lyriq are now falling under the SUV category. This gives Tesla more wiggle room when it comes to pricing, as vehicles in this category can be priced up to $80,000 to qualify for the tax credit.

However, it is still unclear how the Treasury Department’s list of qualified vehicles will change in March. That’s when the agency is expected to release its guidelines for applying the IRA’s strict rules regarding the procurement and production of the minerals and battery components used in electric cars.