[AWD Or Nothing]

I am not a tax expert, but I would be very careful trying to screw the IRS out of tax credits, as that sort of situation may qualify as a recapture event, and the taxpayer would be required to repay the tax credit to the IRS on a subsequent tax return.

26 CFR § 1.30-1 - Definition of qualified electric vehicle and recapture of credit for qualified electric vehicle.

www.law.cornell.edu

Nope, it would not, and I fail to see how this is screwing the IRS out of anything as it is following the law.. As long as the vehicle was not purchased with the intent to be re-sold (clearly not in this case after thousands of miles of use), the federal tax credit does not need to be returned. Only the first owner of the vehicle is entitled to the tax credit, and there would not be another first owner for that VIN if the vehicle is re-purchased by the manufacturer (i.e, the original transaction for purchase isn't reversed, and the title-history of ownership will remain in tact). There is no minimum holding period for the fed tax credit, but there is for some state incentives.

Edit: The rule you quoted would only apply if it were known the manufacturer would be converting the vehicle to a non-electric powered vehicle. A re-purchase doesn't necessarily mean the vehicle would be destroyed (usually they fix and re-sell), and since OP doesn't know and would have no reason to know what the mfr would do with it, it wouldn't trigger such an exception.

 

[ddx]

So should we keep our ID.4s past 4 years / 50,000 miles? (for us who buy)

Darn I should drive my ID.4 less.... I'm at 30,000+ miles already, nothing breaks yet but I do not have a front motor. Has anyone rear motor died yet?

 

[tacomambo]

consider it blessing in disguise.. get lemon law.. buy tesla model y for less than what u paid for id4

 

[Plant Peon]

This past Sunday, after charging my 2023 ID.4 for a planned trip, I got the dreaded electrical system failure messages and the car refused to move. Fortunately, I was able to put it in neutral for a flatbed tow to the dealer. Yesterday, the dealer informed me it needed a new front motor and immediately put me in a loaner (a brand new Taos in the blue color I would have chosen for my ID.4 if it had been available). I have been cautioned that the part is on order but they have no idea how long it will take. The dealer has been really good so far through this process and I have no complaints there (even though they have acknowledged that this is the first ID.4 they have serviced...). I do really love the car (my first EV), but a failed motor after two months of ownership has me questioning the purchase. When I bought the car in November I traded in a 2016 Volvo XC60 and I honestly did not feel like the ID.4 was a step down in terms of comfort, quality or driving experience. But my faith in the ID.4 has been shaken.

I am really sorry to hear that this happened. As others have said before me, nothing is perfect and things happen. That is when companies have the real opportunity to step up and take care of the customer. I really hope that happens for you and you don’t lose confidence in your vehicle. I know that is easier said than done. But it is my hope.
Best wishes in your repairs and future ownership.

 

[johnwelch62]

I am really sorry to hear that this happened. As others have said before me, nothing is perfect and things happen. That is when companies have the real opportunity to step up and take care of the customer. I really hope that happens for you and you don’t lose confidence in your vehicle. I know that is easier said than done. But it is my hope.
Best wishes in your repairs and future ownership.

I'm in the process of getting VW to buy back my 21 AWD Pro S Gradient. I'd like to buy a 23 AWD Pro S Plus to replace it. Are you seeing those coming off the line?

 

[bjackson]

I am really sorry to hear that this happened. As others have said before me, nothing is perfect and things happen. That is when companies have the real opportunity to step up and take care of the customer. I really hope that happens for you and you don’t lose confidence in your vehicle. I know that is easier said than done. But it is my hope.
Best wishes in your repairs and future ownership.

If I send you cookies, can you arrange for a swap for a Tourmaline Blue with Galaxy interior (Pro S AWD)?

 

[PANZERidIV]

So should we keep our ID.4s past 4 years / 50,000 miles? (for us who buy)

Darn I should drive my ID.4 less.... I'm at 30,000+ miles already, nothing breaks yet but I do not have a front motor. Has anyone rear motor died yet?

Should anyone ever keep a vehicle that is new technology past the warranty? 🤔

 

[ds23]

I am really sorry to hear that this happened. As others have said before me, nothing is perfect and things happen. That is when companies have the real opportunity to step up and take care of the customer. I really hope that happens for you and you don’t lose confidence in your vehicle. I know that is easier said than done. But it is my hope.
Best wishes in your repairs and future ownership.

The biggest thing that keeps making me doubt if I should take my reservation (35-1 currently) is the quality of service I get from VW Care whether calling or chatting. To this day I've never had them able to provide an escalation when they didn't know the answer to a query.

 

[Plant Peon]

I'm in the process of getting VW to buy back my 21 AWD Pro S Gradient. I'd like to buy a 23 AWD Pro S Plus to replace it. Are you seeing those coming off the line?

Yes. But not too many right now. More RWDs at present.

 

[Nai3t]

I am not a tax expert, but I would be very careful trying to screw the IRS out of tax credits, as that sort of situation may qualify as a recapture event, and the taxpayer would be required to repay the tax credit to the IRS on a subsequent tax return.

26 CFR § 1.30-1 - Definition of qualified electric vehicle and recapture of credit for qualified electric vehicle.

www.law.cornell.edu

I'm unsure of the applicability of the clawback provisions you're citing. Those date back to the 90's and discuss tax deductions. The credits as we know then today didn't take effect until 2005 and 2010.

As amended by the IRA,

"(5)Recapture​

The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit."​

​

At face value, this sounds like it would take a Rich Rebuilds / ICE-T scenario.

 

[Trout14]

So sorry to hear this about your vehicle. I just got mine back today for the same issue. New front motor. Under a 1000 miles, owned it 20 days, at the dealer for longer than that. So nice to have it back today!! They did set me up with a loaner free of charge.

 

[Mountaingamer]

So should we keep our ID.4s past 4 years / 50,000 miles? (for us who buy)

This has me considering purchasing an extended warranty. Could you imagine hitting 53k miles, pulling into a EA station to charge, and when your done the car throws a stupid error out of nowhere and needs a new motor??!! Apparently you can’t run to the junkyard and diy the motor swap as they are for some insane reason matched to the vehicle…… scary stuff imho. Does anyone know how much VW charges for a new motor swap that’s out of warranty?

 

[His_Stigness]

I'm unsure of the applicability of the clawback provisions you're citing. Those date back to the 90's and discuss tax deductions. The credits as we know then today didn't take effect until 2005 and 2010.

As amended by the IRA,

"(5)Recapture​

The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit."​

​

At face value, this sounds like it would take a Rich Rebuilds / ICE-T scenario.

Thanks for finding something more concrete.

I agree, based on the language you found, that it would take converting an EV to an ICE for recapture to be needed.

 

[GaryPQ]

I assume not. MyVW app says there are no recalls.

I wouldn't trust the MyVW App to tell me the sky was blue. It makes random s**t up, like, random almost stream-of-consciousness "doors locked, doors unlocked, climate on, climate off." At 3am . . .

 

[DELbuckeye]

3372

@bjackson Did you see anything leaking or wet spots on the driveway before this happened?

Have about the same mileage and I have noticed 'wet spots' under the front axle where I park. Crawled under the best i can, but never could see anything wet, and all the fluid levels look fine.

Was thinking of taking it by the dealer, but haven't since i will have to

take a half day off work to do it.

Guess it's time to make the appointment!

 

[PANZERidIV]

Park backwards and see. To me it looks like there are older spots there too plus different shades. Who knows from that picture?

 

[Mrau]

A clean piece of cardboard (aka: Amazon box) underneath the car for a night might give you a better idea of what is leaking.

 

[bjackson]

I never noticed any wet spots under the car when it was parked, but it is parked in my driveway most of the time and the weather has been pretty wet this winter. A trip to the dealer can't hurt. Still no word from the dealer when i might get mine back. I still have the loaner Taos, and I really miss my ID.4!

 

[Palouser]

This is a godsend in disguise. Let them take the 30 days+ necessary to do the repair, then ask VW for a buy back, get a full refund and keep the tax credits. Profit, and repeat.

You can't use an EV tax credit twice in one year as I remember. At least check.

 

[Nai3t]

You can't use an EV tax credit twice in one year as I remember. At least check.

Uh oh, somebody better tell VW 's lease department!

J/k but seriously, an individual can claim as many federal credits as cars they buy, the only limits being their total tax liability and now income caps.