Most eligible for full $7,500 EV tax credit score

“Most” 2023 and 2024 Volkswagen ID.4 electrical crossovers on sale now are eligible for the complete $7,500 federal EV tax credit score, VW confirmed Wednesday in a press launch.

VW notes within the launch that it is the first overseas automaker to qualify underneath tightened guidelines referring to battery provide that took impact firstly of the 12 months. It achieved that with the batteries equipped by South Korean agency SK On—included in most 2023 fashions.

The automaker famous that the 2024-model-year qualification is predicated on battery provide from SK, and thus may change all year long. Nonetheless, VW mentioned it’s “optimistic” that the 2024 ID.4 will retain the tax credit score for everything of the 2024 calendar 12 months.

The 2024 fashions aren’t scheduled to reach at dealerships till the spring, with pricing to be introduced nearer to that date. Leftover 2023 ID.4 fashions are nonetheless being bought, with a base value of $40,290, together with vacation spot, earlier than the tax credit score. So the efficient value is perhaps $32,790 or much less.

Preliminary U.S. ID.4 fashions have been made in Germany, however the firm ramped up manufacturing at Chattanooga, Tennessee, in 2022, paving the best way for the ID.4 to qualify for the tax credit score.

2024 Volkswagen ID.4

Along with stricter guidelines for qualification, the federal EV tax credit score turns into an immediate dealership rebate this 12 months. A Dec. 2023 report indicated not all franchised dealerships have been prepared to start providing the rebate, however Tesla began doing so earlier this month by way of its company-owned gross sales community.

Nonetheless Tesla can be among the many automakers, together with Normal Motors and Ford, left to regulate their provide chain in a few of their North American-made autos to fulfill battery sourcing necessities.