The New Volkswagen ID.4 to Receive Full EV Tax Credit

Exciting news has emerged from Volkswagen: In 2024, the all-electric ID.4 model in the U.S. will again qualify for the full $7,500 federal tax credit.

Reflecting on the past, the 2023 Volkswagen ID.4 had initially qualified for the incentive in 2023 but briefly lost eligibility on January 1, 2024, due to heightened requirements for local battery components. Volkswagen has confirmed that the 2023 Volkswagen ID.4, equipped with SK On battery components and placed in service in 2024, will reclaim full eligibility for the $7,500 Federal Tax Credit for qualifying purchasers. Further, the impending 2024 Volkswagen ID.4, featuring SK On components, is anticipated to be fully eligible for the incentive upon its release.

Volkswagen clarifies that the qualification for the MY24 ID.4 hinges on the existing battery supply. While vehicle qualification in 2024 is contingent on batteries still being in production, the German automaker expresses confidence that the MY24 ID.4 will maintain eligibility throughout the year (2024), with updates set to reveal as information becomes available.

The latest update on the fueleconomy.gov website, sourced from Internal Revenue Service data, affirms the reappearance of the ID.4 on the list. The resurgence suggests the potential availability of the incentive through leasing, given the distinct requirements for electric vehicles.

Volkswagen emphasizes the ID.4 as an affordable all-electric model, boasting a starting price of $38,995* (excludes taxes and destination fees). The federal tax credit further enhances its popularity, which is evident in nearly 38,000 sales in 2023. A noteworthy distinction is that Volkswagen is the sole foreign automaker with an electric vehicle battery qualifying for the entire Federal Tax Credit, which is attributed to the local production of the car and its batteries (SK On).

President and CEO of Volkswagen Group of America, Pablo Di Si, expresses enthusiasm about the development, stating, “This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs.” Di Si underscores the ID.4’s position as one of the lowest-priced electric SUVs on the market, and the $7,500 Federal Tax Credit makes it even more accessible. He highlights the strategic decision to localize the assembly of the ID.4 in Tennessee and invest further in battery production, components, and innovation, showcasing the German automaker’s commitment to supporting American jobs and advancing towards a carbon-neutral future.

Volkswagen enthusiasts’ anticipation mounts for the upcoming release of the impending ID.4. Early indicators reveal an enhanced range based on EPA range and energy consumption data. While pricing and specifications for the 2024 Volkswagen ID.4 are pending announcement, the prospect of an improved electric driving experience adds to the anticipation surrounding this latest offering from Volkswagen.

A Beautifully Sustainable Future Awaits You at Sunrise Volkswagen

Come check out the stylish Volkswagen ID.4 awaiting your arrival at Sunrise Volkswagen. Whether you’re searching for the fresh scent of new leather or the reliability of a certified pre-owned, we offer exceptional customer service that makes you feel right at home. Volkswagen is renowned for its quality German engineering at reasonable prices. If financial difficulties arise, don’t hesitate to use our finance center. Nonetheless, if you’re not quite ready for a new car, our service department can fix up your current ride for an unbeatable price. So head on over to Sunrise Volkswagen, where our team is dedicated to your satisfaction. 

Photo Source/Copyright: Volkswagen Newsroom