Volkswagen announced Wednesday that most of its ID.4 in the 2023-2024 Model Year will gain access to federal tax credits of up to $7,500 this year under the US Inflation Reduction Act.
Coverage
According to the press release, Volkswagen is the only foreign brand that meets the US‘ stringent component sourcing requirements to qualify for the IRA’s tax credits in 2024.
True enough, Volkswagen’s MY 23 ID.4s using SK On’s battery components and selling at a base MSRP of $38,995 are eligible for the $7,500 EV incentive in the US starting this year. In addition, the upcoming MY 24 ID.4s will also benefit from the same amount when they hit the market.
Volkswagen noted that it based the MY 24 ID. 4’s qualification on its current battery supply. However, these models can still lose their eligibility, depending on the production of the new battery packs once the current supply lasts.
“This is great news for consumers in the US 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.”
Pablo Di Si, President and CEO of Volkswagen Group of America
VW ID. 4’s power and performance
The Volkswagen ID.4 is undoubtedly a competitive electric vehicle model currently available in the market today.
In fact, it advanced to become the fifth most popular EV in the US last year with a year-on-year sales growth of 84%.
It offers two battery configurations and two powertrains. The ID.4 Standard model features a 62kWh battery that can generate an EPA-estimated range of 209 miles. It currently sells at a base MSRP of 38,995. Meanwhile, the ID.4 Pro has an 82 kWh battery, enabling a 275-mile EPA-estimated range. The ID.4 AWD Pro delivers an EPA-estimated range of 255 miles and a maximum output of 295 horsepower.
The MY 23-24 Volkswagen ID. 4’s federal tax credit qualification is indeed good news for prospective buyers. Starting this year, eligible buyers can use the incentive as a down payment at the point of sale by transferring the tax credits to a dealer.
However, buyers must keep in mind that 2023 ID.4s with LG components are not eligible for the full tax credit. Interested customers can check the model’s window sticker (Monroney label) to determine the specific battery component manufacturer.
