Ioniq 5 Requalifies for $7,500 Tax Credit
TL/DR –
The Hyundai Ioniq 5 was temporarily ineligible for a $7,500 federal tax credit due to its battery packs being sourced from SK On’s Hungarian facility, which did not meet the requirement under the Inflation Reduction Act (IRA) for batteries to be sourced from trade-friendly countries. As of April 2025, the Ioniq 5 is again eligible for the credit since Hyundai began sourcing batteries from SK On’s U.S. factory. To qualify for the tax credit, the buyer’s income must be below a certain threshold and the vehicle’s selling price must be under $80,000.
The Hyundai Ioniq 5 Returns to Federal Tax Credit Eligibility
The Hyundai Ioniq 5, a stylish electric crossover, is back on the list for the full $7,500 federal tax credit after a brief disappearance, thanks to changes made in its battery sourcing. The vehicle is produced in Hyundai’s new Metaplant in Georgia, qualifying it for the EV tax credit under the Inflation Reduction Act (IRA).
Previously, the Ioniq 5 was removed from the eligibility list due to its battery packs being sourced from SK On’s Hungarian facility. Hyundai rectified this by switching battery sourcing to SK On’s U.S.-based factory in Georgia.
During the period of ineligibility, the only way to avail the $7,500 incentive was to lease the vehicle, as leased EVs are considered “commercial vehicles”. In response, Hyundai offered a $7,500 discount for those financing or buying outright.
Ioniq 5 Makes a Comeback on the EPA’s Eligibility List
As of late April 2025, the Ioniq 5 is back on the EPA’s eligibility list. Now, consumers can obtain the tax credit upfront at the time of purchase, without having to lease.
Just note that qualification for the tax credit involves an adjusted gross income below $300,000 (joint), $225,000 (head of household), or $150,000 (individual). Also, the vehicle’s MSRP must be below $80,000. With the Ioniq 5 price range being from $44,075 to $56,975, it easily meets this requirement.
So, if you’re considering an Ioniq 5, it’s an excellent time to make the move.
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