2023 ID.4 Now Eligible for Full $7,500 Federal Tax Credit

May 25th, 2023 by

When the Federal Tax Credit for electric cars was first signed into law, its complexity of provisions made it unclear to which vehicles it would apply. Many models were unqualified due to a price ceiling that was in place, so the benefits didn’t primarily go to luxury car buyers. The more difficult qualifier to sort out was the domestic content provision which had the goal of benefitting US assembly plants and suppliers.  Fortunately, after careful analysis, Bud Brown Volkswagen can announce that all 2023 ID.4 models will qualify for the full $7,500 tax credit.

The Affordable ID.4 Will Now Be More Affordable

The ID.4 is presently the only foreign-brand EV eligible for the full Federal Tax Credit. With price ranges from the high $30Ks to the low $50Ks, the ID.4 model line closely straddles this year’s overall average price paid for a new car. With this tax credit, the ID.4 $38,995 will drop down to $31,495, making it quite price competitive with gas-driven crossovers of the same size. And there lies the entire purpose behind the tax credit in the first place.

Assembled in Chattanooga with U.S.-Sourced Content

The ID.4 is built in a state-of-the-art assembly facility in Chattanooga, Tennessee. While the IID.4’s battery pack, LG Chem out of South Korea But now, the battery now comes from a $2 billion factory near VW’s Chattanooga Plant by SK Innovation, another foreign firm building EV infrastructure in the U.S. 

This is great news for consumers in the U.S. because it expands the choice of truly affordable EVs,” said Pablo Di Si, President and CEO of Volkswagen Group of America. “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. This shows that we made the right decision to localize production of the ID.4 in Tennessee and invest even further in battery production, components, and innovation. Every ID.4 sold supports thousands of American jobs and helps advance our goal of a carbon-neutral future.”

Already a Growing Sales Success

The Federal Tax Credit will help the ID.4 even more of a hit with American buyers with 2023 sales of over three and a half times that of this time last year, making it the fourth best-selling EV in the U.S. Its size and crossover body style puts it in the heart of the country’s most popular vehicle segment, and its stylish appearance and high tech interior have brought tens of thousands over to their first EV.

The ID.4 starts with rear-wheel drive from a 201 horsepower rear-mounted motor. AWD Pro models add a second motor in front for all-wheel drive with a combined power of 295 horsepower. Depending on how you plan to use the car, you have two batteries from which to choose. 62kWh is the size of the standard battery, which provides an EPA-estimated range of 209 miles. The larger 82 kWh battery will give an EPA-estimated range of 255 miles.

Beyond batteries and motors, the ID.4 also offers a very modern interior with an innovative digital gauge cluster mounted on the steering column, clever controls within the 12.0-inch infotainment touchscreen, and innovative ambient lighting.  The EV drivetrain allows plenty of room and comfort for drivers and passengers, and there is an impressive array of safety and driver assistance features. With the ID.4 more affordable than ever, perhaps it is time to head to Bud Brown Volkswagen and see if the ID.4 will work for you.