EV tax credit

[readablesword]

Hello I am waiting for a VW ID.4 EV that will be coming from Germany in January or so. I am under the impression that I will not get the $7,500 tax credit because it is not being made in the United States. They have started making this EV in the U.S. If I order a second one (made in U.S.) and trade in the first one for the second one that would be made in the U.S., would I possibly get the tax credit on the second one? The batteries components come from Russia and some other country I can't remember, but are made in the US.

[MariaDG]

Hi there!  Thanks for an awesome question.  Its difficult to give a definitive answer without more details, but the short answer is, possibly.  The IRS instructions have a link to a list of vehicle models which may qualify for the credit.  I don't believe there are any VW models on there currently, but you could check with VW to see if that is in the works.  IF the new vehicle qualifies, then your plan would work.  
Some manufacturers are not eligible for the credit because they have already reached a cap.  Once they sell 200,000 EVs, they are no longer incentivized. 
The other thing to consider is when you committed to the purchase of the vehicle you are waiting on.  Any vehicles that were under binding contract by 8/16/22 do not need to meet the final assembly qualification, even if they are not delivered until next year. 

Here's a link that may help: https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

[Cleanenergyadvocate]

@MariaDG I reserved a VW ID.4 2023 (made in US) right before the inflation reduction act on 8/14. I am expecting car to be delivered by Dec-22 or Jan-23. I also have a EV purchase contract (binding agreement) with the dealer.

Can you confirm I qualify for $7,500 EV credit as per the IRS rules before inflation reduction act (less than 200,000 units for this car)?

Can I avail this credit as a part of 2022 or 2023 tax filing depending on when it gets delivered?

What other documents are required?