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Discussion Starter · #1 ·
I received email to lock my 2023 ID.4 order and deposited another $400 to lock my order.
I was informed that delivery will around Q4 2022.
I was still anxious if i get my order in 2022 if I'll avail of the Federal Tax Credit post IRA.
Reading Edmund.com online.
Volkswagen says it will start building the 2023 Volkswagen ID.4 in Tennessee, which means the 2023 ID.4 will qualify for the full $7,500 federal EV tax credit but only if you buy one in 2022. The requirements will get stricter in 2023.

Any thoughts?
 

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In short nobody knows. The fact it is build in Tennessee will probably allow for half the credit. No matter when you receive it. The IRA is active already. The other half is to be debated since it is about the battery. IRS guidance is not out yet so nobody knows but if there is no guidance before you take delivery of your car it probably still allows for the full tax credit.

There are already many threads about this topic. Feel free to explore the forum.
 

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I received email to lock my 2023 ID.4 order and deposited another $400 to lock my order.
I was informed that delivery will around Q4 2022.
I was still anxious if i get my order in 2022 if I'll avail of the Federal Tax Credit post IRA.
Reading Edmund.com online.
Volkswagen says it will start building the 2023 Volkswagen ID.4 in Tennessee, which means the 2023 ID.4 will qualify for the full $7,500 federal EV tax credit but only if you buy one in 2022. The requirements will get stricter in 2023.

Any thoughts?
Yes, if you take delivery in 2022, you would get the full $7500 tax credit. The only requirement from Aug 16 to Dec 31 is North American assembly.

Starting in 2023, the battery sourcing requirements, income limits, and MSRP caps all take effect. No one knows for certain how much of the credit the ID.4 will qualify for yet in 2023.
 

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I received email to lock my 2023 ID.4 order and deposited another $400 to lock my order.
I was informed that delivery will around Q4 2022.
I was still anxious if i get my order in 2022 if I'll avail of the Federal Tax Credit post IRA.
Reading Edmund.com online.
Volkswagen says it will start building the 2023 Volkswagen ID.4 in Tennessee, which means the 2023 ID.4 will qualify for the full $7,500 federal EV tax credit but only if you buy one in 2022. The requirements will get stricter in 2023.

Any thoughts?
Edmunds.com describes the situation pretty well. It is possible the battery components requirements take effect in late 2022, but they may not until 2023.

Dave
 

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Discussion Starter · #5 ·
In short nobody knows. The fact it is build in Tennessee will probably allow for half the credit. No matter when you receive it. The IRA is active already. The other half is to be debated since it is about the battery. IRS guidance is not out yet so nobody knows but if there is no guidance before you take delivery of your car it probably still allows for the full tax credit.

There are already many threads about this topic. Feel free to explore the forum.
I am sure if you read the IRA guidlines. It tells you that other than the final assembly in US is required till 12/31/2022. The sourcing will be implemented 1/1/2023. If your look at VW website for Chattanooga plant, ID.4 parts are all source in the US. Steel from Kentucky and Ohio, Battery from Georgia, etc. High likelihood it’ll get the full $7,500 tax credit.
 

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I am sure if you read the IRA guidlines. It tells you that other than the final assembly in US is required till 12/31/2022. The sourcing will be implemented 1/1/2023. If your look at VW website for Chattanooga plant, ID.4 parts are all source in the US. Steel from Kentucky and Ohio, Battery from Georgia, etc. High likelihood it’ll get the full $7,500 tax credit.
@rlim562427 If you have the link to that info about the battery sourcing I'm sure I'm not the only person who'd like to see it.
 

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So excited! Same story for me. Ordered mid June, just got the email to lock (about a month ago I was bumped to 2023 model). I ordered AWD Pro S tourmaline blue with white interior. The lock page estimated Q4 2022. Once I locked that estimate doesn't show up any where any more. Fingers crossed I get the full 7500
 

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I am sure if you read the IRA guidlines. It tells you that other than the final assembly in US is required till 12/31/2022. The sourcing will be implemented 1/1/2023. If your look at VW website for Chattanooga plant, ID.4 parts are all source in the US. Steel from Kentucky and Ohio, Battery from Georgia, etc. High likelihood it’ll get the full $7,500 tax credit.
Yes, but where do the components of the battery come from? That makes all the difference. They may come from China. We simply don't know yet.

Dave
 

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Discussion Starter · #11 ·
Yes, but where do the components of the battery come from? That makes all the difference. They may come from China. We simply don't know yet.

Dave
Steel in Alabama and Ohio, interior parts in Indiana and South Carolina, battery from Georgia and electronics components in Kentucky and North Carolina.
VW is using batteries supplied by SK Innovation, another South Korean company that recently opened a $2 billion factory nearby VW’s plant there.
South Korea's SK Innovation Co Ltd, a supplier for Volkswagen and Ford Motors, will spend $727 million to build its second electric vehicle (EV) battery plant in the United States.
First U.S. factory, with capacity of 9.8 GWh intended to serve Volkswagen’s EV base in neighboring Tennessee, and production on track to begin in 2022.
The company will spend $727 million to build its second electric vehicle (EV) battery plant in the United States.
Construction of the plant with annual capacity of 11.7 gigawatt-hours of batteries will begin in July in the southern state of Georgia.
 

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Discussion Starter · #12 ·
@rlim562427 If you have the link to that info about the battery sourcing I'm sure I'm not the only person who'd like to see it.
South Korea's SK Innovation Co Ltd, a supplier for Volkswagen and Ford Motors, will spend $727 million to build its second electric vehicle (EV) battery plant in the United States.
First U.S. factory, with capacity of 9.8 GWh intended to serve Volkswagen’s EV base in neighboring Tennessee, and production on track to begin in 2022.
The company will spend $727 million to build its second electric vehicle (EV) battery plant in the United States.
Construction of the plant with annual capacity of 11.7 gigawatt-hours of batteries will begin in July in the southern state of Georgia.

I assumed if Ford motor EV is qualified, VW battery should also qualify since they are supplied by the same company.
 

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Steel in Alabama and Ohio, interior parts in Indiana and South Carolina, battery from Georgia and electronics components in Kentucky and North Carolina.
VW is using batteries supplied by SK Innovation, another South Korean company that recently opened a $2 billion factory nearby VW’s plant there.
South Korea's SK Innovation Co Ltd, a supplier for Volkswagen and Ford Motors, will spend $727 million to build its second electric vehicle (EV) battery plant in the United States.
First U.S. factory, with capacity of 9.8 GWh intended to serve Volkswagen’s EV base in neighboring Tennessee, and production on track to begin in 2022.
The company will spend $727 million to build its second electric vehicle (EV) battery plant in the United States.
Construction of the plant with annual capacity of 11.7 gigawatt-hours of batteries will begin in July in the southern state of Georgia.
All true, but where do the battery cells get assembled? The anodes and cathodes?

I worked for a major aircraft company that assembled all airliners in the US. The parts that make it up, though, came from all over the world. It may not be any different for something like an EV battery. China seems to dominate in some sectors of battery component manufacturing.

We just don't know until VW certifies the 2023 for the Tax Credit.

Dave
 

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All true, but where do the battery cells get assembled? The anodes and cathodes?

I worked for a major aircraft company that assembled all airliners in the US. The parts that make it up, though, came from all over the world. It may not be any different for something like an EV battery. China seems to dominate in some sectors of battery component manufacturing.

We just don't know until VW certifies the 2023 for the Tax Credit.

Dave
And don’t forget about those minerals! Korean battery makers said 80% of their minerals come from China. Battery Giants, Hyundai Concerned by US Moves on China Supplies
 

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And don’t forget about those minerals! Korean battery makers said 80% of their minerals come from China. Battery Giants, Hyundai Concerned by US Moves on China Supplies
It's a concern for sure. But it's also really unclear whether those percentages are all that relevant to the batteries made outside Korea (such as in USA). Really high levels of Chinese sources are not surprising for Korea because it is right next to China. We might be a different starting point here (although I have no doubt still with significant Chinese material). How fast can they reroute more of it from Australia, Chile, etc., in addition to N. America is the question. This stuff's super interesting to me, even if it didn't affect me personally!
 

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Discussion Starter · #17 ·
It's a concern for sure. But it's also really unclear whether those percentages are all that relevant to the batteries made outside Korea (such as in USA). Really high levels of Chinese sources are not surprising for Korea because it is right next to China. We might be a different starting point here (although I have no doubt still with significant Chinese material). How fast can they reroute more of it from Australia, Chile, etc., in addition to N. America is the question. This stuff's super interesting to me, even if it didn't affect me personally!

Ford Blue Oval City started construction of the 5.6 billion campus in Stanton Tennessee for the production of electric truck and batteries in partnership with Korea's SK Innovation.
I assumed if Ford motor EV is qualified, VW battery should also qualify since they are supplied by the same company.
Ford batteries qualifies in 2022. I hope if I received my VW before 12/31/2022 It should qualify.
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Discussion Starter · #18 ·
It's a concern for sure. But it's also really unclear whether those percentages are all that relevant to the batteries made outside Korea (such as in USA). Really high levels of Chinese sources are not surprising for Korea because it is right next to China. We might be a different starting point here (although I have no doubt still with significant Chinese material). How fast can they reroute more of it from Australia, Chile, etc., in addition to N. America is the question. This stuff's super interesting to me, even if it didn't affect me personally!
If I get my VW before 12/31/22.
The battery component eligibility start 1/1/2023.
 

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Discussion Starter · #19 ·

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If I get my VW before 12/31/22.
My understanding is that the battery component is not required, only US assembly point is required up until 12/31/2022.
The battery component eligibility start 1/1/2023.
This is correct. Technically they could issue guidance to make the battery component be effective earlier. But current IRS guidance suggests they will stick to 1/1/2023. So until then it needs to qualify under old rules and also be made in North America.
 
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