Volkswagen ID.4: Tax Credit Eligibility

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Volkswagen has officially confirmed that most of its 2023 and 2024 ID.4 models are eligible for the full $7,500 Federal Tax Credit in 2024, positioning these electric SUVs as an increasingly affordable choice in the market.

The company announced that the MY23 Volkswagen ID.4, equipped with SK On battery components, and the forthcoming MY24 ID.4 models (also with SK On components) qualify for this significant tax incentive. The base MSRP for the MY23 ID.4 starts at $38,995 before the tax credit. This development makes the ID.4 not only cost-effective but also highly competitive against traditional compact SUVs.

Volkswagen noted that the qualification of the MY24 ID.4 depends on the battery supply, which is subject to change as it relies on future production. However, the company remains optimistic that the MY24 models will maintain their eligibility throughout 2024 and promises to keep consumers updated.

Volkswagen’s Unique Position – According to fueleconomy.gov, Volkswagen stands out as the only foreign automaker currently offering a full battery electric vehicle that qualifies for the full Federal Tax Credit, due to its local assembly and sourcing practices. Starting in 2024, customers purchasing an eligible EV can apply the tax credit directly at the point of sale, effectively using it as a down payment, provided they transact with participating dealers.

Market Impact – The ID.4 has been a notable success in the electric vehicle market, attracting new buyers to both the Volkswagen brand and e-mobility. It ranked as the fifth best-selling EV in the U.S. in 2023, with sales increasing by 84% from the previous year.

Pablo Di Si’s Statement – “This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs,” said Pablo Di Si, President and CEO of Volkswagen Group of America. He emphasized the impact of localizing ID.4 assembly in Tennessee and investing in battery production and innovation, highlighting the vehicle’s contribution to American jobs and a carbon-neutral future.

2023 ID.4 Features – The 2023 ID.4 is available with two battery sizes and two powertrains. The ID.4 Standard has a 62kWh battery with an EPA-estimated range of 209 miles, while the ID.4 Pro features an 82 kWh battery with a 275-mile range. The AWD Pro model offers up to 295 horsepower and an estimated range of 255 miles.

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