VW and Rivian once again qualify for federal EV tax credits

The ID.4 is now one of the more affordable EVs in the US.


The narrow list of EVs that qualify for federal tax credits has already grown again. Ars Technica notes the US government has restored multiple electric rides to the list of vehicles that get at least some credit. The 2023 VW ID.4 (the first US-made model) receives the full $7,500 incentive, as do the upcoming Chevy Blazer EV, Equinox EV and Silverado EV. Rivian R1T and R1S buyers can also get a $3,750 credit provided their configuration slips under the $80,000 cap.

When the Internal Revenue Service outlined the original list, just six EVs could get the full tax credit. This included the Cadillac Lyriq, Chevy Bolt, Chevy Bolt EUV, Ford F-150 Lightning, Tesla Model 3 and Tesla Model Y. Other EVs and plug-in hybrids only received partial credits, such as the Chrysler Pacifica PHEV and Ford Mustang Mach-E.

The Treasury Department outlined stricter requirements for EV tax credits in March. To be eligible for $3,750, a car's battery components must be 50 percent made or assembled in North America. At least 40 percent of key minerals must come from the US or its free trade partners to earn another $3,750. Batteries must be completely made in North America by 2029 for vehicles to still qualify.

As VW is keen to point out, this makes the ID.4 a better deal. The entry-level Standard trim costs $31,495 after accounting for the tax credit. If you can live with the 209-mile range, it may seem like a bargain compared to even the price-cut Model 3. You'll more likely want to spring for the ID.4 Pro with 275 miles of range, but that's still more attainable with a $36,495 sticker after the incentive.

This may also help put Chevy's wave of upcoming EVs within reach. The Equinox in particular is expected to start around $30,000 — a full credit would price it below many conventional SUVs, let alone electrified versions. As with VW, the discount could spur sales and help the US meet the climate goals that helped prompt the Inflation Reduction Act.