Does the Volkswagen ID.4 Qualify for a Tax Credit?

Yes, the 2023 ID.4 is one of the few electric vehicles currently available in the U.S. that is eligible for the $7,500 Federal Tax Credit under the 2022 Inflation Reduction Act. This is true of new vehicle purchases made in calendar year 2023 (based upon the customer’s eligibility for the Federal Tax Credit). Note, when the vehicle is purchased, the Tax Credit is not part of the transaction, but instead something the customer will claim on their taxes the following year. For example, the tax credit for any ID.4 purchased in calendar year 2023, will be claimed when the customer files their 2024 taxes.

Please note, that some customers who purchase an ID.4 (or any electric vehicle) may or may not receive the full benefit of the EV tax credit, or any portion of it, due to their individual eligibility. A customer’s ability to claim the tax credit depends on their individual income tax situation, including whether their adjusted gross income exceeds certain income thresholds as established by the Inflation Reduction Act and confirmed by current/updated Federal Tax guidelines. We encourage you to consult with your tax advisor regarding your ability to claim the credit if purchased (based on your annual tax/income situation).

 If you choose to lease a new 2023 ID.4, the vehicle still qualifies for the $7,500 Federal Tax Credit, however the $7,500 gets passed through to the lease customer in the form of a rebate that goes directly into the lease deal at time of contracting. This ultimately reduces the Cap Cost and lowers your monthly lease payment. There are no income thresholds to meet to qualify for the $7,500 rebate when leasing (like there are when purchasing). As a result, leasing a 2023 ID.4 can be one of the easiest and most cost-effective ways to get into a new electric vehicle, even when you would not qualify for the $7,500 Federal Tax Credit under a purchase scenario.

 There is peace of mind with the 2023 ID.4, knowing that it is one of the few electric vehicles currently on the market that is eligible to receive the benefit of the $7,500 – either as a Tax Credit when purchased, or as a Rebate when leased.