This Volkswagen EV Now Comes with Full Tax Credit Benefits

by TTAC Staff

Published: January 30th, 2024

Photo credit: Volkswagen

Volkswagen has recently announced that their MY23 and the upcoming MY24 models of the ID.4, equipped with SK On battery components, will be eligible for the full $7,500 Federal Tax Credit. This development makes these models of the ID.4, which start at a base MSRP of $38,995 before the tax credit, a more budget-friendly option in the electric SUV segment. However, it's important to note that the eligibility of MY24 ID.4 models is conditional on future battery production and may be subject to change.

Unique Position of Volkswagen in the EV Industry

Volkswagen stands out as the only foreign car manufacturer currently offering a full battery electric vehicle in the U.S. that qualifies for the full Federal Tax credit. This achievement is largely due to the local assembly and sourcing practices of the company. Beginning in 2024, eligible customers will have the option to apply the tax credit directly at the point of sale as a down payment by transferring the credit to participating dealers.

Sales Performance and Impact of the ID.4

The ID.4 has established itself as a preferred choice in the EV market, attracting new customers to both the Volkswagen brand and to electric mobility. In 2023, it ranked as the fifth best-selling EV in the United States, with a sales increase of 84 percent compared to 2022. Pablo Di Si, President and CEO of Volkswagen Group of America, emphasized the affordability of the ID.4 and how the tax credit enhances its accessibility. He also highlighted Volkswagen's commitment to localizing assembly in Tennessee and investing in battery production, component manufacturing, and innovation.

Specifications of the 2023 Volkswagen ID.4

The 2023 ID.4 is available for sale with two battery sizes and two powertrains. The Standard model features a 62kWh battery with an EPA-estimated range of 209 miles, while the ID.4 Pro has an 82 kWh battery, offering an EPA-estimated range of 275 miles. The ID.4 AWD Pro models boast up to 295 horsepower and an all-wheel-drive capability, with an EPA-estimated range of 255 miles.

Final Considerations

It's important for potential buyers to understand that not all vehicles or customers will qualify for the tax credit. Only specific models with certain battery components are eligible. Additionally, the tax credit is only applicable on the original purchase of a qualifying vehicle and cannot be used for leasing. Customers are encouraged to consult a tax advisor for eligibility based on their individual tax situation. The tax credit program is subject to limitations and changes that are beyond Volkswagen's control.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

TTAC Staff

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1 comment

YaMoBeThere on Feb 01, 2024
Appreciate you being transparent about AI "co-writing" this article but, woof, it really reads like an AI article.

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CM Korecko Cadillacs traditionally have been opulent, brash and leaders in the field; the "Standard of the World".That said, here's how to fix the brand:[list=1][*]Forget German luxury cars ever existed.[/*][*]Get rid of the astromech droid names and bring back Seville, Deville, Eldorado, Fleetwood and Brougham.[/*][*]End the electric crap altogether and make huge, gas guzzling land yachts for the significant portion of the population that would fight for a chance to buy one.[/*][*]Stop making sports cars and make true luxury cars for those of us who don't give a damn about the environment and are willing to swim upstream to get what we really want.[/*][*]Stop messing around with technology and make well-made and luxurious interiors.[/*][*]Watch sales skyrocket as a truly different product distinguishes itself to the delight of the target market and the damnation of the Sierra Club. Hell, there is no such thing as bad publicity and the "bad guy" image would actually have a lot of appeal.[/*][/list=1]
FreedMike Not surprisingly, I have some ideas. What Cadillac needs, I think, is a statement. They don’t really have an identity. They’re trying a statement car with the Celestiq, and while that’s the right idea, it has the wrong styling and a really wrong price tag. So, here’s a first step: instead of a sedan, do a huge, fast, capable and ridiculously smooth and quiet electric touring coupe. If you want an example of what I’m thinking of, check out the magnificent Rolls-Royce Spectre. But this Cadillac coupe would be uniquely American, it’d be named “Eldorado,” and it’d be a lot cheaper than the $450,000 Spectre – call it a buck twenty-five, with a range of bespoke options for prospective buyers that would make each one somewhat unique. Make it 220 inches long, on the same platform as the Celestiq, give it retro ‘60s styling (or you could do a ‘50s or ‘70s throwback, I suppose), and at least 700 horsepower, standard. Why electric? It’s the ultimate throwback to ‘60s powertrains: effortlessly fast, smooth, and quiet, but with a ton more horsepower. It’s the perfect drivetrain for a dignified touring coupe. In fact, I’d skip any mention of environmental responsibility in this car’s marketing – sell it on how it drives, period.  How many would they sell? Not many. But the point of the exercise is to do something that will turn heads and show people what this brand can do.  Second step: give the lineup a mix of electric and gas models, and make Cadillac gas engines bespoke to the brand. If they need to use generic GM engine designs, fine – take those engines and massage them thoroughly into something special to Cadillac, with specific tuning and output. No Cadillac should leave the factory with an engine straight out of a Malibu or a four-banger Silverado. Third step: a complete line-wide interior redo. Stop the cheapness that’s all over the current sedans and crossovers. Just stop it. Use the Lyriq as a blueprint – it’s a big improvement over the current crop and a good first step. I’d also say Cadillac has a good blend of screen-controlled and switch-controlled user interfaces; don’t give into the haptic-touch and wall-to-wall screen thing. (On the subject of Caddy interiors – as much as I bag on the Celestiq, check out the interior on that thing. Wow.)Fourth step: Blackwing All The Things – some gas, others electric. And keep the electric/gas mix so buyers have a choice.Fifth step: be patient. That’s not easy, but if they’re doing a brand reset, it’ll take time. 
NJRide So if GM was serious about selling this why no updates for so long? Or make something truly unique instead of something that looked like a downmarket Altima?
Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?