
Volkswagen announced that most 2023 and 2024 Volkswagen ID.4 EVs will be eligible for full $7,500 federal tax credit.
The Volkswagen ID.4 was already known as one of the more affordable EVs sold in the United States. Now, with this federal tax credit, along with other discounts, the ID.4 is even more compelling. The current base model Volkswagen ID.4 Standard comes in at just over $40,000 MSRP. That model has a 62-kWh battery and an EPA-estimated range of 209 miles. If you go bigger with the ID.4 Pro, it comes with a 82-kWh battery that allows for an EPA-estimated range of 275 miles.
No word if this tax credit will be available for the long anticipated Volkswagen ID.Buzz.
From the automaker’s statement:
“This is great news for consumers in the U.S. 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
Keep in mind: this tax credit is available for most 2023 and 2024 ID.4s. As an example, vehicles with LG components do not qualify. Volkswagen says to apply tax credit as a down payment, the purchaser must elect to transfer the entirety of the allowable credit. Then they have to complete a buyer attestation. Plus, additional documentation to a participating dealer that has been approved by the IRS for Energy Credits Online.
The potential for savings is beginning to look very promising. As an example, if you add up all the potential savings for a base model ID.4 in California, you could see savings bringing the price down to the $25,000-ish-zone. This could help sales.