“Most” 2023 and 2024 Volkswagen ID.4 electrical crossovers on sale now are eligible for the complete $7,500 federal EV tax credit score, VW confirmed Wednesday in a press launch.
VW notes within the launch that it is the first international automaker to qualify underneath tightened guidelines referring to battery provide that took impact at the beginning of the yr. It achieved that with the batteries provided by South Korean agency SK On—included in most 2023 fashions.
The automaker famous that the 2024-model-year qualification relies on battery provide from SK, and thus may change all year long. Nevertheless, VW stated it’s “optimistic” that the 2024 ID.4 will retain the tax credit score for everything of the 2024 calendar yr.
2024 Volkswagen ID.4
The 2024 fashions aren’t scheduled to reach at dealerships till the spring, with pricing to be introduced nearer to that date. Leftover 2023 ID.4 fashions are nonetheless being offered, with a base value of $40,290, together with vacation spot, earlier than the tax credit score. So the efficient value is likely to be $32,790 or much less.
Preliminary U.S. ID.4 fashions had been made in Germany, however the firm ramped up manufacturing at Chattanooga, Tennessee, in 2022, paving the best way for the ID.4 to qualify for the tax credit score.
2024 Volkswagen ID.4
Along with stricter guidelines for qualification, the federal EV tax credit score turns into an prompt dealership rebate this yr. A Dec. 2023 report indicated not all franchised dealerships had been prepared to start providing the rebate, however Tesla began doing so earlier this month by means of its company-owned gross sales community.
Nevertheless Tesla can be among the many automakers, together with Normal Motors and Ford, left to regulate their provide chain in a few of their North American-made autos to satisfy battery sourcing necessities.