VW Confirms US-Built ID.4 Will Be Eligible for the $7,500 Federal Tax Credit

Photo: VW

Automakers have been freaking out since the Biden administration reworked how the federal electric vehicle tax credit works to disqualify foreign-built EVs. See, EVs still haven’t really hit price parity with internal combustion vehicles, so using that tax credit as a carrot to bring buyers other than eco-warriors and early adopters into the fold was a big sales strategy.

American Car Buyers Are Warming Up to EVs

While some manufacturers are presently doing nothing to make their vehicles eligible, Volkswagen confirmed on Wednesday that the US-built ID.4 crossover would qualify for the $7,500 tax credit. This is a big deal because VW has been betting big on electric cars lately, and it needs to do everything it can to get people here to buy them, and competing on price is pretty important for the brand.

“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, in a statement. “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 production of the ID.4 in Tennessee and invest even further in battery production, components and innovation.”

The base model ID.4 is indeed one of the cheapest EVs you can clap your hot little hands on right now, but with just over 200 miles of range and a decidedly “meh” driving experience, we wouldn’t recommend buying it. The ID.4 Pro gets the full 275-mile range but is rear-wheel drive and will cost a not-insubstantial $45,290.

So, even if we don’t love the ID.4, we do love consumer choice, which means that VW’s big news is ultimately good news. Hopefully more manufacturers will get on-board with the new manufacturing and parts-sourcing requirements.