VW ID.4 eligible for US tax credit in 2024
The ID.4 uses cells from SK On from the US state of Georgia, which is essential for the vehicle’s eligibility. According to the US Inflation Reduction Act, at least 50 per cent of the vehicle’s battery components had to be manufactured or assembled in North America in 2023. The percentage rises successively to 100 per cent by 2029 by ten percentage points per year. With one exception: For 2024 and 2025, the applicable percentage is 60 per cent.
In 2023, Volkswagen was the only foreign manufacturer to make the list of electric models eligible for the full $7,500 tax credit in the United States. The carmaker has assembled the electric SUV in the US state of Tennessee since 2022, saying that the American-built ID.4 uses materials and components from eleven US states – including steel from Alabama and Ohio, interior parts from Indiana and South Carolina, electronics components from Kentucky and North Carolina – and battery cells from Georgia.
However, VW points out that “because vehicle qualification in 2024 is dependent on batteries not yet produced, qualification is subject to change.” In 2023, the ID.4 was the fifth best-selling EV in the US market and sales were up 84% over 2022, VW writes in its press release.
“This is great news for consumers in the US 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.”
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