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Hyundai IONIQ 5 and IONIQ 9 lose the $7,500 EV tax credit: Here’s how you can still get it
In a sudden reversal, Hyundai’s new IONIQ 5 and IONIQ 9 EVs no longer qualify for the $7,500 US tax credit. Although this is a major blow to one of the top-selling EV brands in the US, there is still a way you can get the credit. Here’s how.
Hyundai EVs lose US federal tax credit in 2025
After setting another new US retail sales record last year, its fourth straight, Hyundai expected 2025 could be even bigger.
“With exciting new models like the IONIQ 9 and increased US production ramping up at our new Hyundai Motor Group Metaplant America in Georgia, I’m confident this momentum will continue,” Hyundai Motor North America CEO Randy Parker said.
Earlier this month, Hyundai announced its new 2025 IONIQ 5 and IONIQ 9, both made in the US, qualified for the $7,500 federal EV tax credit.
This was significant news because it was the first time Hyundai qualified since the Inflation Reduction Act (IRA) passed in 2022.
The upgraded 2025 IONIQ 5 and Hyundai’s three-row IONIQ 9 were among 25 EVs that qualified for the credit in early January.
According to the updated list from the Department of Energy (DOE) last week, Hyundai no longer has eligible EV models. The only Hyundai Motor Group (including Kia and Genesis) electric cars that qualify are the 2025 Kia EV6 and 2026 Kia EV9. Genesis, Hyundai’s luxury brand, also lost eligibility.
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, which will be joined by Hyundai’s three-row IONIQ 9.
Last year, Hyundai said it expected US-built models would qualify for a partial $3,750 credit until its battery unit with SK On came online, which was expected sometime in 2025.
Kia builds the new 2025 EV6 and three-row EV9 at its West Point, GA plant, enabling it to still qualify for the credit.
Meanwhile, Hyundai is still passing the $7,500 EV tax credit on through leasing. With leases starting as low as $199 per month, the new 2025 IONIQ 5 is still cheaper than a new Toyota RAV4.
With a bigger 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 gains noticeable design upgrades and now includes an NACS port for charging at Tesla Superchargers.
The IONIQ 5 was already the fourth-top-selling electric vehicle in the US last year. With more range, an upgraded design, and a Tesla NACS port, it will be even more attractive in 2025.
| 2025 Hyundai IONIQ 5 Trim | EV Powertrain | Driving Range (miles) | Starting Price* |
| IONIQ 5 SE RWD Standard Range | 168-horsepower rear motor | 245 | $42,500 |
| IONIQ 5 SE RWD | 225-horsepower rear motor | 318 | $46,550 |
| IONIQ 5 SEL RWD | 225-horsepower rear motor | 318 | $49,500 |
| IONIQ 5 Limited RWD | 225-horsepower rear motor | 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 horsepower dual motor | 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 the new 2025 IONIQ 5 a free ChargePoint Level 2 EV charger. Alternatively, you can choose a $400 charging credit.
Are you ready to test Hyundai’s new electric vehicles for yourself? 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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