- Hyundai is bringing production of the Ioniq 5 to Georgia, which should make it eligible for the tax credit.
- Yet a spokesperson confirms that the Ioniq 5 won’t be eligible for the tax credit until the second quarter.
- In the meantime, you can take advantage of the tax credit by leasing an Ioniq 5 (or any other EV).
Hyundai is relocating production of the U.S.-market Ioniq 5 to its Georgia “Metaplant.” The move will bring production of the electric SUV closer to one of its biggest markets, while also allowing it to qualify for a $7,500 federal clean vehicle purchase incentive. Cars must be built in the U.S., Mexico or Canada to receive credit. That’ll be a big boon for Hyundai, but don’t get ahead of yourself. It hasn’t happened yet.
“The Hyundai IONIQ 5 and the Genesis Electrified GV70 currently do not qualify for the EV tax credit when purchased,” Hyundai spokesperson Chris Paukert told InsideEVs. “Both continue to receive the credit when leased. Hyundai expects the models to qualify for the $7,500 purchase credit in Q2. In the interim, Hyundai and Genesis have extended special pricing incentives to consumers.”
Photo by: InsideEVs
The 2025 Hyundai Ioniq 5 XRT
I’d reached out because we noticed late last week that the Hyundai Ioniq 5 was not on the EPA’s updated list of qualifying vehicles. Someone on Reddit noticed over the weekend, too, so clearly our team isn’t the only interested party. The Ioniq 5 is one of the best EVs on sale, and a great alternative to cars like the Tesla Model Y or Ford Mustang Mach-E. But buyers have long been pushed into leasing, as all EVs are eligible for the $7,500 credit when leased. If you want $7,500 off a purchase, though, you and your EV both have to meet relatively stringent requirements.
Onshoring production will help the Ioniq 5 meet those requirements. That’s also why Kia is bringing production of the 2025 EV6 and EV9 to the U.S.
The incoming administration has also promised to remove tax credits altogether. The new President also plans to loosen fuel economy requirements and limit California’s ability to set stricter emissions criteria. That leaves carmakers and car buyers with a lot of uncertainty. It’s not clear if the federal tax credit will even exist by the time Hyundai has the updated Ioniq 5 on sale, and unclear if the stricter sourcing requirements will make it hard for most vehicles to qualify.
We’ll keep our eyes on this issue, and continue to update you as things develop. 2025 is clearly going to be a rocky, weird year for the EV market, so stay tuned.
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