VW’s well-liked electrical SUV makes use of battery parts sourced from South Korea’s SK On
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by Brad Anderson
January 25, 2024 at 11:00
The record of electrical autos eligible for the complete $7,500 federal EV tax credit score in the USA is ready to develop to incorporate each the 2023MY and 2024MY VW ID.4.
Laws launched on January 1 means EVs can’t have battery parts made or assembled by an organization primarily based in China, North Korea, Russia, or Iran. Moreover, autos eligible for the complete $7,500 credit score should have batteries with at the least 50% of their parts sourced from the U.S., Mexico, or Canada. The uncooked supplies used within the batteries should even be sourced from a rustic the U.S. has a free commerce settlement with.
Learn: IRS Confirms All EVs And PHEVs Eligible For $3,750 And $7,500 Tax Credit score In 2024
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In an announcement, VW confirmed that 2023MY ID.4 fashions with battery parts from South Korea’s SK On are eligible for the complete tax credit score, in addition to the 2024 fashions. VW notes that whereas car qualification in 2024 relies on batteries that haven’t but been produced, there’s a risk that qualification will change for the 2024 mannequin however it’s assured will probably be eligible for the complete yr.
Patrons of a brand new ID.4 mannequin will be capable of have the tax credit score used as a down fee on the acquisition on the level of sale by transferring the credit score to collaborating sellers.
“That is nice information for shoppers within the U.S. as a result of it expands the selection of really reasonably priced EVs,” president and chief govt of the Volkswagen Group of America, Pablo Di Si mentioned. “The ID.4 is already one of many lowest-priced electrical SUVs available on the market, and the $7,500 Federal Tax Credit score makes it much more attainable. This exhibits that we made the proper choice to localize the meeting of the ID.4 in Tennessee and make investments even additional in battery manufacturing, parts and innovation. Each ID.4 offered helps hundreds of American jobs and helps advance our aim of a carbon-neutral future.”
VW sells the 2024 ID.4 with a 62 kWh and 82 kWh battery choices, ranging from $38,995.
