Is the Volkswagen ID.4 Still Eligible for Tax Credits?

Andrew Koole
Updated on Jun 23, 2022 · 4 min read
While the list of reasons to buy and electric car continues to grow, one reason is fading away. As sales increase, federal tax credits are dwindling. It’s left consumers unsure about whether their preferred models are still eligible. 
Brands that started offering EVs early like Tesla and Chevy reached their limit of permitted units a long time ago, but newcomers to the U.S. market like Volkswagen can still offer up to $7,500 in tax credits for their EVs.
That means the Volkswagen ID.4 is still on the list of EVs that car receive the federal tax credit. Jerry, your car ownership super app, gives you everything you need to know about how to claim the credit for your ID.4, why it’s still eligible, and how to claim it in the article below.

How does the federal EV tax credit work?

When the Biden Administration got on board with electric vehicles, it developed a number of ways to support the new industry and incentivize drivers to make the switch. One of them was a $7,500 tax credit. 
A lot of people saw the figure as a discount, but a tax credit doesn’t exactly work that way. Instead, it goes against your tax bill at the end of the year. You can only claim against what you owe, so anyone with a bill lower than $7,500 will save a little less than that on their EV.  
The amount offered also changes based on the capacity of each vehicle’s battery, and it’s not a bottomless fund. The government limits each automaker to 200,000 eligible units. Once that number of EVs is sold, each brand’s customers are no longer able to claim the credit.

Why is the Volkswagen ID.4 still eligible for a tax credit?

Knowing the info above, it might seem odd that the Volkswagen ID.4 is still available for tax credits. VW is an enormous company, after all. How is it that they haven’t sold more than 200,000 EVs?
The answer can be found in the number of all-electric models the German automaker is selling to Americans and each of their model years. As of 2022, only two VW-made EVs are on U.S. roads, the e-Golf and the ID.4. (no VW hybrids are eligible).
The e-Golf showed up in 2015, but its extremely low range made it an impractical vehicle for this country’s vast landscape. Sales weren’t great, and VW cut it from the U.S. lineup in 2019, two years before Biden raised the tax credit to its current rate. 
VW gave the ID.4 a lot more battery power, but it’s only been on the market since September 2020. In 2021, less than 17,000 were bought in the United States.

Is the Volkswagen ID.4 a good electric car?

The ID.4 easily outperforms its older sibling, but in the growing list of EVs available, it has a hard time standing out. Many other models can offer a similar mid-200s mile battery range and MPGe for less money, and some in the same price bracket offer over 300 miles on one charge.
But for the diehard VW fan, the ID.4 will get you where you need to go without involving any dinosaurs, and the tax credit will make it worth your while. You can also save on the car by shopping for car insurance quotes online with Jerry. 
Jerry is your ultra-talented car insurance broker for life. No need to sit across from him at a desk: Jerry is an app! It takes less than a minute to sign up, and you’ll be presented with competitive rates from dozens of top providers. Don’t lose coverage—find savings with Jerry.

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