Expect a Federal Tax Credit for the 2024 Volkswagen ID.4
Volkswagen has exciting news for electric vehicle enthusiasts in the U.S., as the all-electric ID.4 model will regain eligibility for the full $7,500 federal tax credit in 2024.
Recalling the 2023 Volkswagen ID.4‘s previous qualification for the incentive in 2023, it temporarily vanished from the list on January 1, 2024, due to stricter requirements for local battery components. However, Volkswagen has revealed that the 2023 Volkswagen ID.4 (equipped with SK On battery components) placed in service in 2024 will again be eligible for the complete $7,500 Federal Tax Credit for qualifying purchasers. Additionally, the highly anticipated 2024 Volkswagen ID.4, featuring SK On components, is expected to be fully eligible for the incentive upon release.
Volkswagen emphasizes that the qualification for the MY24 ID.4 is contingent on the current battery supply. However, acknowledging that vehicle qualification in 2024 depends on batteries that are in production, Volkswagen expresses optimism that the MY24 ID.4 will maintain eligibility throughout the year (2024). The German automaker promises to provide updates as information becomes available.
The latest update on the fueleconomy.gov website, derived from Internal Revenue Service data, confirms the re-appearance of the ID.4 on the list, indicating the potential availability of the incentive through leasing, given different requirements for electric vehicles.
Volkswagen underscores the ID.4 as an affordable all-electric model, boasting a starting price of $38,995* (excluding travel and destination fees). The federal tax credit further enhances its popularity, which is evident in nearly 38,000 sales in 2023. Notably, Volkswagen stands out as the sole foreign automaker with a battery electric vehicle qualifying for the entire Federal Tax Credit, a distinction attributed to the local production of the car and its batteries (SK On).
Pablo Di Si, President and CEO of Volkswagen Group of America, expresses enthusiasm about the news, stating, “This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs.” Di Si highlights the ID.4’s status as one of the lowest-priced electric SUVs on the market, and the $7,500 Federal Tax Credit makes it even more accessible. He emphasizes the strategic decision to localize the assembly of the ID.4 in Tennessee and invest further in battery production, components, and innovation, showcasing Volkswagen’s commitment to supporting American jobs and advancing towards a carbon-neutral future.
Volkswagen anticipates the release of the 2024 model year version soon, with early indicators pointing to an improvement based on EPA range and energy consumption data. While pricing and specs for the 2024 ID.4 are not official, the prospect of an enhanced electric driving experience adds to the anticipation surrounding this latest offering from Volkswagen.
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Photo Source/Copyright: Volkswagen Newsroom