First non-US automaker to get full ,500 tax credit

First non-US automaker to get full $7,500 tax credit

VW became the first non-US automaker to qualify for the full $7,500 federal electric vehicle tax credit.

Volkswagen announced its eligibility two days after the US Treasury Department announced a list of eligible models, all made by American companies. VW delayed announcing its eligibility because it was waiting for documents from its battery supplier to send to the Treasury. ID.4 models are now listed on the website as eligible.

All 2023 ID.4 models used this year are eligible because they are built in Chattanooga, Tennessee. VW also supplies ID.4 batteries to the US.

Pablo Di Si, president and CEO of Volkswagen Group of America, said:

“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 affordable. This shows that we made the right decision to localize production of the ID.4 in Tennessee and invest more in battery production, components and innovation. Every ID.4 sold supports thousands of jobs in America and helps advance our goal of a carbon-free future.”

The 2023 ID.4 is available in two battery sizes and two engines.

The ID.4 Standard Model has an MSRP starting at $38,995 that features a 62 kWh battery and an EPA-estimated range of 209 miles. The standard ID.4 is $31,495 after a $7,500 tax credit.

The ID.4 Pro has an 82 kWh battery with an EPA-estimated range of 275 miles. A modern permanent magnet motor powers the rear wheels and produces 201 horsepower.

The ID.4 AWD Pro model adds an asynchronous motor to the front axle, bumping it up to a maximum of 295 horsepower, with AWD capability, and has an EPA-estimated range of 255 miles.