In a sudden reversal, Hyundai's new IONIQ 5 and IONIQ 9 EVs are no longer eligible for the $7,500 US tax credit. While this is a big blow to one of the best-selling EV brands in the US, there's still a way to get credit. Here is the way.
Hyundai EVs lose the US federal tax credit in 2025
After setting another new record for retail sales in the US last year, its fourth in a row, Hyundai expects 2025 to be even bigger.
“With exciting new models like the IONIQ 9 and expanded US production ramping up at our new Hyundai Motor Group Metaplant America in Georgia, I'm confident this momentum will continue,” said Hyundai Motor North America CEO Randy Parker.
Earlier this month, Hyundai announced its new 2025 IONIQ 5 and IONIQ 9, both made in the US, are eligible for a $7,500 EV tax credit.
This was important news because it was Hyundai's first graduation since the Income Tax Reduction Act (IRA) was passed in 2022.
Hyundai's upgraded 2025 IONIQ 5 and three-row IONIQ 9 were among 25 EVs that qualified for the credit in early January.
According to an updated list from the Department of Energy (DOE) last week, Hyundai no longer has eligible EV models. The only Hyundai Motor Group electric vehicles (including Kia and Genesis) that are eligible are the 2025 Kia EV6 and the 2026 Kia EV9. Genesis, Hyundai's luxury brand, has also lost relevance.
Hyundai began production at its new $7.6 billion EV plant in Georgia in October. The new 2025 IONIQ 5 was the first to roll off the assembly line, to be joined by Hyundai's three-row IONIQ 9.
Last year, Hyundai said it expected US-built models to qualify for the $3,750 minimum credit until its SK On battery comes online, which was expected to be in 2025.
Kia builds 2025 new EV6 and EV9 three-wheelers at its West Point, GA plant, making it eligible for the credit.
Meanwhile, Hyundai is still passing on a $7,500 EV tax credit for the lease. With leases starting as low as $199 per month, the new 2025 IONIQ 5 is still cheaper than the new Toyota RAV4.
With a larger 84 kWh battery, the 2025 IONIQ 5 has a driving range of up to 328 miles, up from 303 miles in the outgoing model, which had a 77.4 kWh battery. It also gets a significant design upgrade and now includes a NACS port for Tesla Supercharger charging.
The IONIQ 5 was already the fourth best-selling electric car in the US last year. With more width, improved design, and the Tesla NACS port, it will be even more attractive in 2025.
| 2025 Hyundai IONIQ 5 Trim | EV Powertrain | Driving distance (miles) | Starting price* |
| IONIQ 5 SE RWD Standard Range | 168-horsepower rear engine | 245 | $42,500 |
| IONIQ 5 SE RWD | 225-horsepower rear engine | 318 | $46,550 |
| IONIQ 5 SEL RWD | 225-horsepower rear engine | 318 | $49,500 |
| IONIQ 5 Limited RWD | 225-horsepower rear engine | 318 | $54,200 |
| IONIQ 5 SE Dual Motor AWD | 320-horsepower dual motor | 290 | $50,050 |
| IONIQ 5 SEL Dual Motor AWD | 320-horsepower dual motor | 290 | $53,000 |
| IONIQ 5 XRT Dual Motor AWD | 320 horses two engines | 259 | $55,400 |
| IONIQ 5 Limited Dual Motor AWD | 320-horsepower dual motor | 269 | $58,100 |
Hyundai launched a new promo last week. It offers those who buy or lease a new 2025 IONIQ 5 a free ChargePoint Level 2 EV charger. Or, you can choose a $400 charging credit.
Are you ready to test drive Hyundai's new electric vehicles? We can help you get started. Check out our links below to find deals on Hyundai, Kia, and Genesis EVs at a dealer near you today.
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