EV Tax Credit
As the first mass-market all-electric SUV in America, the 2021 VW ID.4 EV Volkswagen is kind of a big deal. In a market previously dominated by Tesla and hybrids, Volkswagen has taken the most popular automotive segment and made a stylish, capable, and practical vehicle to fill that hole. Considering that the 2021 VW ID.4 First Edition sold out within eight hours, it’s safe to say that they succeeded. But one thing that hybrids have had going for them in the past is a federal tax credit. How about the ID.4?
How Much Does the 2021 Volkswagen ID.4 Cost?
The 2021 Volkswagen ID.4 is eligible for the $7,500 federal tax credit. The MSRP for 2021 VW ID.4 Pro is $39,995, bought down to $32,495. It can be leased for as low as $379 per month for 36 months for well qualified buyers. Currently, the 2021 VW ID.4 Pro is the only variant of the vehicle that’s available for reservation. Another ID.4 model with AWD is expected to hit the US market sometime in the 2021 calendar year.
How Much Does It Cost to Charge an ID.4?
At home, given national electricity averages, it would cost around $10 to fill your ID.4 from empty to full. However, Volkswagen has partnered with Electrify America to make sure your ID.4 always has the juice it needs when you’re out and about. Included in your 2021 VW ID.4 purchase is three years of unlimited free charging at any Electrify America charging station.
Is there any fine print for EV incentives?
If you’re leasing a vehicle, the credit stays with the manufacturer that’s offering the lease since it is the actual owner of the car. In most cases, however, the tax credit has been factored into the cost of the lease, so the customer benefits.
Plug-in and battery electric vehicles must be built by qualified manufacturers to be eligible for the full $7,500 credit.
Do electric vehicle tax credits run out?
Yes. The government is phasing out the electric vehicle tax credits as sales increase, on the theory that the high initial cost of adding new technology to a vehicle will come down as economies of scale improve with more sales. That’s supposed to eliminate the need for subsidies. The expiration date is separate for each manufacturer and only comes after an automaker sells a certain number of cars.
Disclaimer: NY State Residents ONLY: If Leasing the VW you get $7,500 Federal and $2,000 State Tax that will be applied to the sale of the lease. So it’s $9,500 rebate on the car. For purchasing: $2,000 Tax Credit right away on the sale of the car and the $7,500 Tax Credit write off through the Buyers Tax Returns for 2021.