The Hyundai Ioniq 5 is Back with a Full $7,500 Federal Tax Credit
The Hyundai Ioniq 5, a sleek and tech-savvy electric crossover, has had a rollercoaster ride when it comes to the federal tax credit. Initially, it was eligible for the full $7,500 credit, but then it suddenly disappeared from the list. So, what happened?
The Reason Behind the Disappearance
The Ioniq 5 was initially built at Hyundai’s brand-new Metaplant in Georgia, which qualified it for the EV tax credit under the Inflation Reduction Act (IRA). However, its battery packs were sourced from SK On’s Hungarian facility, which did not meet the IRA’s requirements. As a result, the Ioniq 5 vanished from the list of eligible vehicles.
A Temporary Solution
During the time the Ioniq 5 was not eligible for the tax credit, buyers could still get the $7,500 incentive by leasing the vehicle. This was due to a legal loophole that treats leased EVs as "commercial vehicles," which are exempt from the strict sourcing requirements. Hyundai also offered a $7,500 discount for those who financed or bought the vehicle outright.
The Ioniq 5 is Back
As of late April 2025, the Ioniq 5 is once again eligible for the full $7,500 federal tax credit. This is because Hyundai has switched its battery sourcing to SK On’s U.S.-based factory in Georgia, which meets the IRA’s requirements. Buyers can now get the tax credit upfront at purchase, without having to lease the vehicle.
Eligibility Requirements
To qualify for the tax credit, buyers must meet certain requirements. Their adjusted gross income must be below $300,000 (joint), $225,000 (head of household), or $150,000 (individual). Additionally, the vehicle’s MSRP must be under $80,000, which is not a problem since the Ioniq 5 ranges from $44,075 to $56,975.
Conclusion
If you’ve been eyeing the Hyundai Ioniq 5, now is a great time to consider purchasing one. With the full $7,500 federal tax credit available, you can save even more money on this sleek and tech-savvy electric crossover. Just make sure you meet the eligibility requirements, and you’ll be able to enjoy the benefits of the Ioniq 5 while also reducing your carbon footprint.
