German automobile manufacturer Volkswagen (VW) has officially announced that the all-electric ID.4 model in will be eligible for the full $7,500 federal tax credit in the United States in 2024, with the incentive applying to both the existing 2023 model and the upcoming 2024 model year versions. Last year, the VW ID.4 battery electric crossover SUV qualified for the tax credit but was temporarily removed from the list on January 1, 2024, because of the US government’s more stringent requirements for local battery components. VW has now clarified that existing 2023 ID.4 units equipped with SK On battery components that have been put into service this year will still be eligible for the full tax credit. In addition, the forthcoming 2024 ID.4, when released with SK On components, will also likely qualify for the alluring incentive.

The German brand emphasized that qualification for the 2024 ID.4 electric crossover SUV is contingent on the supply of batteries, and the manufacturer remains optimistic that the EV will maintain eligibility throughout this year. Customers will be updated with information from time to time.

The recent re-appearance of the all-electric crossover SUV on the fueleconomy.gov website has confirmed its eligibility for the federal government’s tax credit, with the official website reflecting updated information from the Internal Revenue Service (IRS).

It is worth noting that, as with other EV models, the federal government’s tax credit may also be applicable to leasing, considering different eligibility requirements.

Pablo Di Si, Chief Executive Officer (CEO) of VW Group of America, expressed enthusiasm on the availability of the tax credit for the EV, stating that it was a great update for consumers in the U.S. because it expands the choice of truly affordable EVs.

The VW ID.4, which is renowned for its affordability with a starting price of just $38,995, has enjoyed a great a popularity in the recent past. Last year, it recorded almost 38,000 sales. Notably, the brand is the only foreign automaker with a BEV that qualifies for the full federal tax credit, owing to local production of both the vehicle and its batteries, specifically the SK On components.

The German automobile giant’s announcement aligns with its commitment to supporting American jobs, while advancing its goal of a carbon-neutral future. The automaker anticipates the release of the upcoming 2024 model year version soon, with notable enhancements in range and energy consumption data, although pricing and specification details are yet to be unveiled.