"Most" 2023 and 2024 Volkswagen ID.4 electric crossovers on sale now are eligible for the full $7,500 federal EV tax credit, VW confirmed Wednesday in a press release.
VW notes in the release that it's the first foreign automaker to qualify under tightened rules relating to battery supply that took effect at the start of the year. It achieved that with the batteries supplied by South Korean firm SK On—included in most 2023 models.
The automaker noted that the 2024-model-year qualification is based on battery supply from SK, and thus could change throughout the year. However, VW said it is "optimistic" that the 2024 ID.4 will retain the tax credit for the entirety of the 2024 calendar year.
2024 Volkswagen ID.4
The 2024 models aren't scheduled to arrive at dealerships until the spring, with pricing to be announced closer to that date. Leftover 2023 ID.4 models are still being sold, with a base price of $40,290, including destination, before the tax credit. So the effective price might be $32,790 or less.
Initial U.S. ID.4 models were made in Germany, but the company ramped up production at Chattanooga, Tennessee, in 2022, paving the way for the ID.4 to qualify for the tax credit.
2024 Volkswagen ID.4
In addition to stricter rules for qualification, the federal EV tax credit becomes an instant dealership rebate this year. A Dec. 2023 report indicated not all franchised dealerships were ready to begin offering the rebate, but Tesla started doing so earlier this month through its company-owned sales network.
However Tesla is also among the automakers, along with General Motors and Ford, left to adjust their supply chain in some of their North American-made vehicles to meet battery sourcing requirements.
