Volkswagen of America announced that the MY23 Volkswagen ID.4 with SK On battery components and MY24 Volkswagen ID.4 models (when released with SK On components) that are placed in service in 2024 will be eligible for the full $7,500 Federal Tax Credit on a purchase by a qualifying purchaser, making the ID.4 not only extremely affordable, but competitive with conventional compact SUVs.
MY24 ID.4 qualification is based on current battery supply, but because vehicle qualification in 2024 is dependent on batteries not yet produced, qualification is subject to change. Volkswagen is optimistic that MY24 ID.4 vehicles will qualify during the entirety of 2024, and will provide updates when received.
Based on fueleconomy.gov, to date, Volkswagen is the only foreign automaker that has a full battery electric vehicle that is eligible for the full Federal Tax credit, thanks to local assembly and sourcing. Starting in 2024, eligible customers may elect to apply the tax credit as a down payment on the purchase of an eligible EV at point of sale by transferring the credit to participating dealers.
Since launch, the ID.4 has proved to be a popular EV in the marketplace, bringing new buyers both to the Volkswagen brand and to e-mobility. In 2023, the ID.4 was the fifth best-selling EV in the U.S. market and sales were up 84% over 2022.
“This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs,” said Pablo Di Si, President and CEO of Volkswagen Group of America. “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.”
The 2023 ID.4 is on sale with two battery sizes and two powertrains, with a starting MSRP of $38,995 for the ID.4 Standard model that has a 62kWh battery and an EPA-estimated range of 209 miles. The ID.4 Pro continues with an 82 kWh battery that allows for an EPA-estimated range of 275 miles. A single permanent magnet synchronous motor powers the rear wheels and provides 201 horsepower. ID.4 AWD Pro models add an asynchronous motor to the front axle, resulting in a bump to a max of 295 horsepower as well as all-wheel-drive capability, and have an EPA-estimated range of 255 miles.
