Is the Volkswagen ID.4 Eligible for the Federal EV Tax Credit?
Are you considering an all-electric vehicle like the 2024 Volkswagen ID.4 as your next vehicle? Do you have questions about cost? You may or may not know about the Federal EV Tax Credit – a $7,500 tax credit that you may receive with the purchase of an eligible electric or plug-in hybrid vehicle. With the popularity of the all-electric Volkswagen ID.4 many potential customers at Broadway by Bergstrom Automotive want to know – is the Volkswagen ID.4 eligible for the Federal EV Tax Credit. Find out with this quick breakdown of the updated policy.
What Is the Federal EV Tax Credit?
Put in place to encourage the purchase of eco-friendly electric and plug-in hybrid vehicles and to offset the costs of materials and manufacturing – the $7,500 Federal EV Tax Credit is a non-refundable tax credit available to taxpayers who purchase an eligible electric or plug-in hybrid vehicle. This tax credit may not be available with the lease of an eligible vehicle. You can opt to transfer the tax credit to eligible dealerships and receive an upfront discount or cash payment instead.
To qualify for the $7,500 tax credit, vehicles must meet a series of criteria that has been updated in 2024. Here is a closer look at the criteria that vehicles must meet to be eligible for the tax credit with your purchase.
- Vehicles must have an MSRP below a set threshold.
- Buyers must have a modified adjusted gross income that is below a set threshold.
- Vehicles must have a final assembly location in North America.
- A portion of the vehicle’s battery components must be produced and/or assembled in North America.
- A portion of the minerals used in the battery must be extracted or processed in the United States.
Does the Volkswagen ID.4 Qualify for the Federal EV Tax Credit?
If you are interested in an all-electric vehicle and you love the Volkswagen brand – you will be happy to hear that the Volkswagen ID.4 is eligible for the $7,500 Federal EV Tax Credit. The 2023 Volkswagen ID.4 with SK On battery components are eligible for the full $7,500 tax credit. The 2024 Volkswagen ID.4 is expected to be eligible for the full credit as well – but it may vary based on the battery supply as the model year continues. To date – Volkswagen is the only foreign automaker that produces an all-electric vehicle that is eligible for the full $7,500 Federal EV Tax Credit.
Will the Volkswagen ID.7 Be Eligible for the Federal EV Tax Credit?
Expected to arrive in the second half of 2024, the 2025 Volkswagen ID.7 provides an all-electric sedan option for Northeast Wisconsin drivers. Built with an 82-kWh lithium-ion battery pack and a 386-mile driving range, the Volkswagen ID.7 will do battle with the Tesla Model 3, BMW i4, Hyundai IONIQ 6 and Chevy Bolt EV. Details about the Volkswagen ID.7 price and battery components have not yet been released – but the Volkswagen ID.7 is expected to be eligible for at least a part of the $7,500 Federal EV Tax Credit.
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Do you have your eye on the 2024 Volkswagen ID.4? You may be asking – is the Volkswagen ID.4 eligible for the Federal EV Tax Credit? We hope that this overview will answer your questions about the $7,500 Federal EV Tax Credit and the Volkswagen ID.4. Apply for credit approval today and get behind the wheel of a brand-new Volkswagen EV in Green Bay, WI!
