Most 2023 & 2024 ID.4s are eligible for full $7,500 Federal Tax Credit

March 20th, 2024 by

Volkswagen ID.4 with Bidirectional Charging

Bud Brown Volkswagen is pleased to inform you that most 2023 and 2024 ID.4 models sold and placed in service in 2024 will be eligible for the full $7,500 Federal Tax Credit on a purchase by a qualifying purchaser. This makes the ID.4 significantly more affordable and competitive with non-electric compact SUVs. 

ID.4 qualification is based on the current battery supply. Models built with batteries from a company known as SK, which are built in Cartersville, Georgia, have enough US-sourced components within them that, when combined with the rest of the Chattanooga, Tennessee-built ID.4, meet the US content requirements for the entire tax credit. Volkswagen is optimistic that 2024 ID.4 models will qualify during the entirety of 2024 and will provide updates when received.

New Volkswagen ID.4 Front View

According to the EPA’s, Volkswagen is the only foreign automaker with an EV eligible for the full Federal Tax credit, thanks to domestic assembly and sourcing. Rather than waiting to get the tax credit from filing the tax return, starting in 2024, eligible customers may elect to apply for the tax credit as a down payment on the purchase of an ID.4 or other eligible EV at the point of sale by transferring the credit to participating dealers, making an ID.4 purchase even more attainable. 

Well-priced, practical, and sized for the heart of the compact SUV market, the ID.4 has been popular in the US market. In 2023, sales were up 84% over 2022, making the 

ID.4 the fifth best-selling EV in the U.S. market. 

Volkswagen ID.4 Front Dash View

“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 assembly 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.”

The ID.4 is available with a choice of two battery sizes, two powertrains, and has a starting MSRP of $38,995. That price is for an ID.4 Standard model with a 62 kWh battery and rear-wheel drive with an EPA-estimated range of 209 miles. The ID.4 Pro has an 82 kWh battery that extends the EPA-estimated range to 275 miles. All rear-drive ID.4 models have a single rear-mounted permanent magnet synchronous motor that provides 201 horsepower. ID.4 AWD Pro models add a second asynchronous motor to the front axle, resulting in a bump to a maximum of 295 horsepower and providing the traction-optimizing advantages of all-wheel-drive capability. The EPA-estimated range for the ID.4 AWD Pro is 255 miles.

New Volkswagen ID.4 Rear View

In addition to no emissions, the ID.4 powertrains are smooth, quiet, and require no maintenance. Oil changes, air filters, spark plugs, belt replacements, flushing out the transmission fluid, and other drivetrain maintenance tasks are all a thing of the past. So is refueling. If you can charge your EV at home and use the car primarily for commuting and local errands, public charging won’t be an issue, either. So head to Bud Brown Volkswagen, let that $7,500 tax credit add to your down payment and drive home quietly and smoothly in a new ID.4.