All 2023 Volkswagen ID.4 models will be eligible for the highest federal EV tax credit of $7,500 under the latest rules, VW confirmed Wednesday in a press release.
Local assembly of ID.4 SUV crossovers for the U.S. market, as well as local sourcing of batteries, makes ID.4 eligible for the full credit. New rules introduced Tuesday require qualified electric vehicle assembly in North America and take into account the sourcing of key minerals and battery components.
2023VolkswagenID.4
As expected, new rules significant cuts quantity Eligible model—until they comply with the battery raw material requirements and are made in the United States (including Canada and Mexico). VW’s plan a lot of qualified electric vehiclesbut it has yet to verify ID.4’s status with the IRS at the start of the week.
Ministry of Finance in February clear up confusion about what makes an SUV versus a car—the key in setting a car price cap of $55,000 for cars and $80,000 for SUVs (as well as pickups). ID.4 qualifies for a higher price cap, although most instances may still qualify with a lower price cap.
2023VolkswagenID.4
The ID.4 2023 has a base price of $38,790 (with destination) for the new ID.4 Standard base model, with a total battery pack of 62 kWh (58 kWh available) delivering an estimated 209-mile range. EPA and Rear Wheel Drive system a 201 hp engine. On top of that, the ID.4 Pro starts at $43,790 with the same engine configuration and a total package of 82 kwh (77 kWh available), for an estimated 275 miles of range. The ID.4 Pro AWD models start at $52,590 and come in a dual-motor all-wheel drive configuration, increasing output to 295 hp, with a range of 255 miles.
For vehicles that do not meet the new requirements, in terms of domestic assembly and sourcing or price ceilings, electric car rental is still a loophole. For example, in January, Lucid advertised “automatic $7,500 savings in the form of reduced capital expenditures,” using a tax deduction that would allow the company to receive a $7,500 credit and remit the amount. savings to customers in the form of rental discounts.
