Volkswagen is excited to share that its 2023 ID.4 models equipped with SK On battery components, and the upcoming 2024 ID.4 models (upon release with SK On components), will be eligible for the entire $7,500 Federal Tax Credit when put into service in 2024. This makes the ID.4 not just affordable but also competitive with traditional compact SUVs. For the MY24 ID.4, this qualification is based on the current battery supply. However, since eligibility in 2024 depends on batteries yet to be produced, this may change. Volkswagen remains hopeful that the MY24 ID.4 will maintain its qualification throughout 2024 and promises to provide updates as they become available.
Volkswagen, as listed on fueleconomy.gov, stands as the sole foreign automaker currently offering a fully electric vehicle eligible for the complete Federal Tax credit, attributed to its local assembly and sourcing. From 2024, eligible customers may choose to apply this tax credit directly as a down payment when purchasing an eligible EV, thanks to a transferable credit system with participating dealers.
Since its launch, the ID.4 has garnered significant popularity in the EV market, attracting new customers to both Volkswagen and electric mobility. In 2023, the ID.4 was the U.S. market’s fifth best-selling electric vehicle, with sales increasing by 84% compared to 2022.
Pablo Di Si, President and CEO of Volkswagen Group of America, comments, “This is fantastic news for U.S. consumers, broadening the range of truly accessible EVs. With its already competitive pricing, the ID.4 becomes even more attainable with the $7,500 Federal Tax Credit. Our decision to localize ID.4 assembly in Tennessee and further invest in battery production and innovation proves to be the right move. Each ID.4 sold not only supports thousands of American jobs but also furthers our commitment to a carbon-neutral future.”
The 2023 ID.4 is currently available with two battery sizes and powertrains. The Standard model starts at $38,995, featuring a 62kWh battery and an EPA-estimated range of 209 miles. The ID.4 Pro, with its 82 kWh battery, offers an EPA-estimated range of 275 miles. Both models are powered by a single permanent magnet synchronous motor driving the rear wheels, delivering 201 horsepower. The ID.4 AWD Pro models include an additional asynchronous motor on the front axle, boosting power to 295 horsepower and adding all-wheel-drive capability, with an EPA-estimated range of 255 miles.