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There has been a lot of confusion about 2023’s new federal EV tax credit law.  First of all, when it comes to the tax code, many of us find it beyond confusing.  That is why a lot of people rely on tax professionals to help them prepare their annual tax returns.  Well the new EV tax credit won’t disappoint you, it is extremely confusing. So What Exactly Is The Electric Vehicle Tax Credit? The electric vehicle tax credit is a nonrefundable tax credit. It is offered to taxpayers who purchase a qualifying new electric vehicle or plug-in hybrid vehicle. It can also be used on qualifying used electric vehicles.  A nonrefundable tax credit will lower your tax liability by the credit amount. However, it can only be used to offset taxes owed. If you do not owe taxes and are receiving a refund, you can not use the tax credit.  Taxpayers can only claim one credit per vehicle. The new vehicle EV tax credit is worth up to a total of $7,500. It consists of a $3,750 tax credit for the battery requirement and a $3,750 tax credit for the critical minerals requirement. The new electric vehicle must meet several other qualifications in order to qualify the full EV tax credit. You may also qualify for up to $4,000 tax credit on qualifying used electric vehicles. There is a maximum limit of 30% of the sales price of a used EV. How Will I Know If I Qualify For The Tax Credit? First, the vehicle you are purchasing must qualify for the tax credit.  The vehicle must meet several criteria such as MSRP, final assembly requirements, and battery & critical minerals requirements.  The IRS urges taxpayers to use its tool for the most up to date information on the tax credit and vehicle requirements.  You can now consult the FuelEconomy.gov website for the latest information. The purchaser of the electric vehicle must also qualify for the tax credit.  The new law sets limits on the modified adjusted gross income for taxpayers in order to qualify for the tax credit.  If both the vehicle and the taxpayer meet the requirements for the tax credit, you must file IRS Form 8936 with your tax return to claim the EV tax credit. Wallace Volkswagen Is Here To Help Let the sales professionals at Wallace Volkswagen of Stuart help answer any questions you may have on new or used electric vehicles and plug-in hybrids.  You can also find answers to many of your questions about the VW Id.4 electric SUV at the Wallace Volkswagen EV Education Center.  Ready to explore a new or used electric vehicle, contact Wallace Volkswagen today.

Although it's only been confirmed for the Chinese market so far, it's highly likely that the Volkswagen ID.6 electric SUV will make the leap to North America. The ID.6 is larger than the ID.4, putting it into contention with mid-size SUVs. It has three rows of seats and seating for up to seven riders. Rear-wheel drive will likely be standard, but a dual-motor, all-wheel-drive arrangement will probably be optional. It's currently unclear how big of a battery Volkswagen will offer here, but in China buyers can choose either a 58.0- or 77.0-kWh pack, with a driving range of up to 365 miles with the larger of the two. Given the popularity of three-row crossovers, VW would be wise to bring the ID.6 to market soon, and we expect to see it as a 2023 model. What's New for 2023? The ID.6 is all-new and will be the largest of Volkswagen's ID models when it goes on sale. More information should be available closer to the SUV's on-sale date. Pricing and Which One to Buy Like the ID.4, the ID.6 is expected to be offered in base, Pro, and Pro S trims and may also be offered in a limited-run 1 st Edition model for its first model year. We are estimating the prices above and won't know exactly how much the SUV will cost or which features will be standard or optional until closer to its launch. Get Pre-Approved Reserve Yours Now Value Your Trade Engine, Transmission, and Performance Volkswagen hasn't released specifics on the ID.6's powertrain, but we expect the SUV to be offered in both rear- and all-wheel-drive configurations with one or two electric motors providing propulsion. When we get a chance to test drive the ID.6, we'll update this story with driving impressions and test results. Range, Charging, and Battery Life In China, the ID.6 will be available with either a 58.0- or 77.0-kWh battery pack, the latter of which is said to provide up to 365 miles of driving range per charge. American versions may be offered with just one of the two packs or perhaps one of a different size. Still, expect a lower estimated range figure based on the EPA's test cycle. Fast-charging technology will undoubtedly be standard, as it is in the smaller ID.4. Interior, Comfort, and Cargo Three rows of seats put the ID.6 into contention with the more expensive Tesla Model X and the Rivian R1S as a family-friendly SUV with an all-electric powertrain. All models will likely come with a panoramic glass roof and will offer a large 12.0-inch infotainment touchscreen for much of the car's controls. As more information becomes available, we'll update this story with more details about: Fuel Economy and Real-World MPG Infotainment and Connectivity Safety and Driver-Assistance Features Warranty and Maintenance Coverage Get Pre-Approved Reserve Yours Now Value Your Trade Check back later for more updates on the 2023 Volkswagen ID.6