Volkswagen announced that the all-electric ID.4 model in the U.S. will be eligible for the full $7,500 federal tax credit in 2024.
Read more Let's recall that the 2023 Volkswagen ID.4 qualified for the incentive in 2023 but disappeared from the list on January 1, 2024, as the requirements for local battery components became tougher. Volkswagen ID.4 Was Popular In 2023 The Volkswagen ID.4 was the fifth most popular all-electric model in the U.S. last year. In the not-too-distant future, it will be joined by the ID.7 and ID. Buzz models. According to the German manufacturer, the existing 2023 Volkswagen ID.4 (with SK On battery components) that are placed in service in 2024 will be eligible for the full $7,500 Federal Tax Credit on a purchase by a qualifying purchaser. At the same time, the upcoming 2024 Volkswagen ID.4—"when released with SK On components"—is also expected to be fully eligible for the incentive. Volkswagen explains: "MY24 ID.4 qualification is based on current battery supply, but because vehicle qualification in 2024 is dependent on batteries not yet produced, qualification is subject to change. Volkswagen is optimistic that MY24 ID.4 vehicles will qualify during the entirety of 2024, and will provide updates when received." The recently updated fueleconomy.gov website, based on Internal Revenue Service info, confirms that with the ID.4 re-appearing on the list: Of course, like in the case of any other EV model, the incentive might be available through leasing (because the requirements are different). Volkswagen underlines that the Volkswagen ID.4 is an affordable all-electric model, with a starting price of $38,995 and partially thanks to the federal tax credit, also very popular (with almost 38,000 sales in 2023). An interesting thing is that Volkswagen is the only foreign automaker that has a battery electric vehicle that is eligible for the full Federal Tax credit. The key is local production of the car, as well as its batteries (SK On). Longyuan supply professional and honest service. Pablo Di Si, President and CEO of Volkswagen Group of America said: “This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs. The ID.4 is already one of the lowest-priced electric SUVs on the market, and the $7,500 Federal Tax Credit makes it even more attainable. This shows that we made the right decision to localize assembly of the ID.4 in Tennessee and invest even further in battery production, components and innovation. Every ID.4 sold supports thousands of American jobs and helps advance our goal of a carbon-neutral future.” "Soon" the company will release the 2024 model year version. We already saw EPA-range and energy consumption data, indicating a noticeable improvement in range. Pricing and specs have not yet been announced. Gallery: 2023 Volkswagen ID.4
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“Most” 2023 and 2024 VW ID.4s will qualify for the full US EV tax credit in 2024 – here’s the lowdown on eligibility.
VW 2023 and 2024 ID.4s with US-manufactured SK On battery components placed in service in 2024 will be eligible for the full $7,500 federal tax credit. SK On is the battery division of South Korea’s SK Innovation, and its SK Battery America plant is in Commerce, Georgia.
That means that the 2023 ID.4 Standard model, with a 62 kWh battery, an EPA-estimated range of 209 miles, and a starting MSRP of $38,995, would cost $31,495 after the tax credit is applied.
As we reported in December 2022, some 2023 models have LG battery components because VW contracted for battery supply with both SK and LG Chem for RWD ID.4s with the larger 82 kWh Pro pack. AWD cars and 62 kWh Standard and S trims have SK-supplied batteries.
Model year 2023 ID.4s made with LG components do not qualify for the full tax credit, so consumers can check the car’s window sticker (Monroney label) to see who the battery component manufacturer is.
VW makes a caveat for the 2024 ID.4 model qualifying, saying that it’s based on current battery supply, so it’s subject to change because it’s dependent on batteries that have not yet been produced. However, the automaker says it’s “optimistic that MY24 ID.4 vehicles will qualify during the entirety of 2024 and will provide updates when received.”
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Photo: Volkswagen of America
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