Earlier this month, there was some confusion about whether the Volkswagen ID.4 all-electric SUV was eligible for federal EV tax credits. The Chattanooga, Tennessee-built family-hauler should have been a shoo-in for these generous discounts but unexpectedly disappeared from the official vehicle list on FuelEconomy.gov. Fortunately, there’s been an update.
Last week, Volkswagen confirmed that, yes, the ID.4 from both the 2023 and 2024 model years is eligible for discounts. Models that are fitted with SK On battery components and placed in service this year qualify for the full $7,500 federal tax credit. This makes the ID.4’s already impressively affordable price even more attractive.
Of course, this is great news for drivers looking to go electric, though there is a potential fly in the proverbial ointment. According a media release from VW, “[Model year 2024] 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,” and that is a little worrying, however, “Volkswagen is optimistic that [Model year 2024] ID.4 vehicles will qualify during the entirety of 2024, and will provide updates when received.”
At the time of publication, the German concern is really the only foreign automaker with vehicles eligible for any federal discounts. The list is significantly shorter for 2024, as the qualifications have changed, but VW has rightfully earned a place alongside Chevrolet, Ford, Rivian and, of course, Tesla.
“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,” said Pablo Di Si, President and CEO of Volkswagen Group of America in a media release. “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.”