The list of electric vehicles eligible for the full $7,500 federal EV tax credit in the United States is set to grow to include both the 2023MY and 2024MY VW ID.4.
Legislation introduced on January 1 means EVs cannot have battery components made or assembled by a company based in China, North Korea, Russia, or Iran. Additionally, vehicles eligible for the full $7,500 credit must have batteries with at least 50% of their components sourced from the U.S., Mexico, or Canada. The raw materials used in the batteries must also be sourced from a country the U.S. has a free trade agreement with.
Read: IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit In 2024
In a statement, VW confirmed that 2023MY ID.4 models with battery components from South Korea’s SK On are eligible for the full tax credit, as well as the 2024 models. VW notes that while vehicle qualification in 2024 is dependent on batteries that have not yet been produced, there’s a possibility that qualification will change for the 2024 model but it is confident it will be eligible for the entire year.
Buyers of a new ID.4 model will be able to have the tax credit used as a down payment on the purchase at the point of sale by transferring the credit to participating dealers.
“This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs,” president and chief executive of the Volkswagen Group of America, Pablo Di Si said. “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 the 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.”
VW sells the 2024 ID.4 with a 62 kWh and 82 kWh battery options, starting from $38,995.
