EV Tax Credit 2023
On December 29, 2022, the Internal Revenue Service (IRS) announced that an amendment had been made to the Clean Vehicle Credit that was established in August of 2022. These changes affect tax credits available for new and used Electric vehicles purchased or leased in 2023. The Volkswagen ID.4 has been a fan-favorite amongst VW enthusiasts and drivers looking to go electric. The 2023 VW ID.4 is eligible for the EV tax credit. Continue reading to learn about the eligible electric vehicle tax credits available when you purchase or lease a VW ID.4 from Bill Jacobs Volkswagen.
New vehicles purchased from 1/1/2023 onward
- Now includes fuel cell electric vehicles (FCVs)
- Battery must be at least 7 kilowatt hours**
- Gross vehicle weight must be less than 14,000 lbs
- Customer must be within the stated income limits*
- Dealer must provide tax documents to the customer at the time of sale***
- Must be produced by a qualified manufacturer with final assembly in North America (Canada, US, Puerto Rico, & Mexico)
- Find out if your new EV qualifies here
- Must be within MSRP limitations
- $80,000: SUVs, vans, and pickup trucks
- $55,000: All other clean vehicles
Adjusted Gross Income Limits New Clean Vehicles
- $300,000: Married, filing jointly, or as a surviving spouse / qualifying widow(er)
- $225,000: Head of household
- $150,000: All other taxpayers
Frequently Asked Questions About the Eligibility Rules for the New Clean Vehicle Credit
New vehicles that meet the manufacturer requirements and have an MSRP under $80,000 are eligible for the tax credit. These vehicles must have final assembly in North America and must be powered by an electric motor with a battery capacity of 7 Kilowatt hours or more. These vehicles must also be capable of being recharged from an external source of electricity, plus a gross vehicle weight rating of less than 14,000 pounds.
The tax credit that is available for eligible electric vehicles as of January 1, 2023 is $7,500. The credit amount will depend on the vehicle meeting the critical minerals requirement ($3,750) and/or the battery components requirement ($3,750). A vehicle meeting neither requirement will not receive a credit, a vehicle meeting only one requirement may be eligible for a $3,750 credit, and a vehicle meeting both requirements may be eligible for the full $7,500 credit.
The entire 2023 VW ID.4 lineup is eligible to receive up to $7,500 in tax credits. These include the 2023 Volkswagen ID.4,2023 Volkswagen ID.4 Pro, 2023 Volkswagen ID.4 Pro S, 2023 Volkswagen ID.4 S, 2023 Volkswagen ID.4 AWD Pro, 2023 Volkswagen ID.4 AWD Pro S.
When you purchase your ID.4 from Bill Jacobs VW, our dealership will walk you through the process and help you determine your eligibility for a tax credit. This official document is important because you will need it to apply for the Clean Vehicle Credit.
The 2023 Volkswagen ID.4 is manufactured in Chattanooga, Tennessee, which qualifies for EV tax credits. If you were unsure about going electric, the recent changes to the New Vehicle Clean Credit has made the ID.4 that much more appealing. At Bill Jacobs Volkswagen, our team is trained in electric charges, VW EV engineering, ID.4 product knowledge and much more. Reach out to our dealership today to learn more about going electric with the 2023 VW ID.4.
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