on January 26, 2024, Volkswagen has declared that the all-electric ID.4 model in the United States will now be eligible for the full $7,500 federal tax credit throughout the year.
This development comes as a significant stride in the electric vehicle (EV) market, signaling Volkswagen’s commitment to affordability and sustainability.
The 2023 Volkswagen ID.4 Success Story
The 2023 Volkswagen ID.4 emerged as the fifth most popular all-electric model in the U.S. in the preceding year. However, it faced a brief hiatus from the federal tax credit list on January 1, 2024, due to stringent requirements on local battery components. Despite this, it left an indelible mark on the EV landscape, setting the stage for the highly anticipated 2024 model.
A Glimpse into the Future: ID.7 and ID. Buzz
Volkswagen hints at an exciting future with the imminent arrival of the ID.7 and ID. Buzz models. These additions promise to further diversify Volkswagen’s electric vehicle lineup, catering to a broader spectrum of consumer preferences.
Federal Tax Credit Eligibility
Volkswagen assures that the existing 2023 ID.4 models, equipped with SK On battery components, placed in service in 2024 will qualify for the full $7,500 federal tax credit. Simultaneously, the forthcoming 2024 Volkswagen ID.4, upon release with SK On components, is also expected to be fully eligible. It’s worth noting that the qualification for MY24 ID.4 is contingent on the availability of batteries yet to be produced. Volkswagen expresses optimism that the vehicles will maintain eligibility throughout 2024, providing regular updates on the matter.
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Confirmation from fueleconomy.gov
The recent update on the fueleconomy.gov website, corroborated by Internal Revenue Service information, solidifies the ID.4’s return to the list of vehicles eligible for the federal tax credit. This affirmation opens avenues for potential incentives, including leasing options, in alignment with varying requirements.
Affordability and Popularity
Volkswagen emphasizes that the ID.4 stands out as an affordable all-electric model, with a starting price of $38,995. The federal tax credit further enhances its appeal, contributing to its popularity evidenced by nearly 38,000 sales in 2023. Notably, Volkswagen distinguishes itself as the sole foreign automaker with a battery electric vehicle qualifying for the full Federal Tax credit. This distinction is attributed to the local production of the car and its batteries, specifically the SK On components.
Model Breakdown and Pricing
Here’s a breakdown of the 2023 Volkswagen ID.4 models, their base prices, destination charges, tax credits, and effective prices:
| Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
|---|---|---|---|---|
| ID.4 Standard 19-inch | $38,995 | +$1,295 | $7,500 | $32,790 |
| ID.4 S 20-inch | $43,995 | +$1,295 | $7,500 | $37,790 |
| ID.4 Pro 19-inch | $43,995 | +$1,295 | $7,500 | $37,790 |
| ID.4 Pro S 20-inch | $48,995 | +$1,295 | $7,500 | $42,790 |
| ID.4 AWD Pro 19-inch | $47,795 | +$1,295 | $7,500 | $41,590 |
| ID.4 AWD Pro S 20-inch | $52,795 | +$1,295 | $7,500 | $46,590 |
Visionary Leadership
Pablo Di Si, President and CEO of Volkswagen Group of America, lauds the news, stating, “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.”
Di Si underscores the strategic decision to localize assembly of the ID.4 in Tennessee, coupled with investments in battery production, components, and innovation. He highlights the positive ripple effect on American jobs, aligning with Volkswagen’s overarching goal of a carbon-neutral future.
The Future Unveiled: 2024 Model Year
In the pipeline is the much-anticipated release of the 2024 model year version. While EPA-range and energy consumption data have surfaced, indicating a noteworthy improvement in range, pricing and specs remain undisclosed. The imminent launch of the 2024 ID.4 promises to further redefine the landscape of electric vehicles.