All 2023 Volkswagen ID.4 fashions will qualify for the very best $7,500 federal EV tax credit score quantity below the most recent guidelines, VW confirmed Wednesday in a press launch.

Native meeting of U.S.-market ID.4 crossover SUVs, in addition to native battery sourcing, assist permit the ID.4 to qualify for the complete credit score quantity. New guidelines launched Tuesday require North American meeting for qualifying EVs, and take into consideration sourcing of crucial minerals and battery parts.

2023 Volkswagen ID.4

As anticipated, the brand new guidelines dramatically lower the variety of qualifying fashions—till they adjust to battery uncooked supplies necessities and are American-made (Canada and Mexico included). VW plans lots of qualifying EVs, nevertheless it hadn’t but verified the ID.4’s standing with the IRS in the beginning of the week.

The Treasury Dept. in February clarified confusion over what constitutes an SUV vs a automotive—crucial in establishing a car value cap of $55,000 for vehicles and $80,000 for SUVs (in addition to pickup vehicles). The ID.4 is eligible on the greater value cap, though most variations would possible nonetheless qualify below the decrease cap.

2023 Volkswagen ID.4

The 2023 ID.4 has a base value of $38,790 (with vacation spot) for the brand new ID.4 Normal base mannequin, with a 62-kwh gross (58-kwh usable) battery pack yielding an EPA-estimated 209 miles of vary and a 201-hp single-motor rear-wheel-drive powertrain. Above that, the ID.4 Professional begins at $43,790 with the identical motor configuration and an 82-kwh gross (77-kwh usable) pack, for an estimated 275 miles of vary. ID.4 Professional AWD fashions begin at $52,590 and get a dual-motor all-wheel-drive configuration, boosting output to 295 hp, with 255 miles of vary.

For automobiles that do not meet the brand new necessities, both for native meeting and sourcing or the value caps, EV leases stays a loophole. Lucid as an illustration in January marketed “an automated $7,500 in financial savings within the type of a capital price discount,” utilizing a tax deduction that enables it to take a $7,500 credit score and go the financial savings alongside to a buyer within the type of a reduced lease.