Volkswagen has announced that the all-electric ID.4 model in the U.S. will be eligible for the full $7,500 federal tax credit in 2024. This news comes after the 2023 Volkswagen ID.4 qualified for the incentive in 2023 but was removed from the list on January 1, 2024 due to tougher requirements for local battery components.
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Volkswagen ID.4 Was Popular In 2023
The Volkswagen ID.4 was the fifth most popular all-electric model in the U.S. last year. In the not-too-distant future, it will be joined by the ID.7 and ID. Buzz models.
According to the German manufacturer, the existing 2023 Volkswagen ID.4 (with SK On battery 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. Additionally, the upcoming 2024 Volkswagen ID.4, “when released with SK On components,” is also expected to be fully eligible for the incentive. Volkswagen notes that MY24 ID.4 qualification is based on current battery supply, and the company is optimistic that MY24 ID.4 vehicles will qualify during the entirety of 2024, with updates to be provided when available.
The fueleconomy.gov website, based on Internal Revenue Service info, confirms that the ID.4 will re-appear on the list.
As is the case with other EV models, the incentive might be available through leasing due to differing requirements. The Volkswagen ID.4, with a starting price of $38,995, is an affordable all-electric model that has been very popular, with almost 38,000 sales in 2023, partially thanks to the federal tax credit.
Volkswagen is the only foreign automaker with a battery electric vehicle that is eligible for the full Federal Tax credit, thanks to local production of the car and its batteries (SK On).
| Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
| 2023 Volkswagen ID.4 Standard 19-inch | $38,995 | +$1,295 | $7,500 | $32,790 |
Pablo Di Si, President and CEO of Volkswagen Group of America said: “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. Every ID.4 sold supports thousands of American jobs and helps advance our goal of a carbon-neutral future.”
“Soon” the company will release the 2024 model year version. We already saw EPA-range and energy consumption data, indicating a noticeable improvement in range. Pricing and specs have not yet been announced.