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Some Rivian and Volkswagen models are once again eligible for the EV tax credit

Published Apr 20th, 2023 7:25PM EDT
Rivian recall: R1T Truck
Image: Rivian

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When the new federal tax credit rules went into effect earlier this week, only six electric vehicles qualified for the full $7,500 credit. At that time, the Cadillac Lyriq, Chevy Bolt EV, Chevy Bolt EUV, Ford E-Transit, F-150 Lightning, and select configurations of the Tesla Model 3 and Model Y were the only EVs to qualify for the full tax credit. Other vehicles like Ford’s Mustang Mach-E and Tesla’s Model 3 Standard Range RWD still qualified, but only for the $3,750 half credit.

The Nissan Leaf, BMW X5 xDrive45e, Genesis Electrified GV70, Rivian R1S, Rivian R1T, and Volkswagen ID.4 were all dropped at the time from the list. A couple of days later, however, things changed. As reported by Ars Technica, certain configurations of the Rivian R1S, Rivian R1T, and Volkswagen ID.4 now qualify for the tax credit.

Specifically, the Volkswagen ID.4 now qualifies for the full $7,500 federal tax credit, and the Rivian R1S and Rivian R1T qualify for the $3,750 credit — as long as they cost less than $80,000. Pablo Di Si, president and CEO of Volkswagen Group of America, said in a statement that it was able to qualify for the full tax credit due to its production being located in Tennessee:

“This is great news for consumers in the US because it expands the choice of truly affordable EVs. The ID.4 is already one of the lowest-priced electric SUVs on the market, and the $7,500 Federal Tax Credit makes it even more attainable. This shows that we made the right decision to localize production of the ID.4 in Tennessee and invest even further in battery production, components and innovation. Every ID.4 sold supports thousands of American jobs and helps advance our goal of a carbon-neutral future.”

The news comes a few weeks after Waymo announced that it will be bringing its fifth-generation Jaguar I-PACE self-driving cars to Austin, Texas.

Joe Wituschek Tech News Contributor

Joe Wituschek is a Tech News Contributor for BGR.

With expertise in tech that spans over 10 years, Joe covers the technology industry's breaking news, opinion pieces and reviews.