Hyundai, Kia, and Genesis electric vehicles have qualified for the $7,500 federal EV tax credit, according to Electrek. Five models, including the popular Hyundai Ioniq 5 crossover and Kia EV9 family SUV, now join a list of 25 EVs and plug-in hybrids from 10 brands eligible for the incentive.
The qualification comes after the Biden administration implemented stringent EV tax credit rules under the Inflation Reduction Act (IRA). To be eligible, vehicles must be built in North America, with additional requirements for battery component sourcing. Hyundai and Kia initially faced exclusion due to their EV production in Korea, even threatening legal action against the administration.
The breakthrough came as Hyundai invested $7.6 billion in an EV manufacturing plant in Georgia. The facility is set to produce the NACS-equipped 2025 Ioniq 5 and the Ioniq 9, a three-row SUV. This move secured the eligibility of Hyundai and Kia models under the revised guidelines.
However, uncertainty looms over the program’s future. President-elect Donald Trump has vowed to repeal EV incentives on his first day in office, raising concerns about the longevity of the program. Industry leaders have urged the incoming administration to preserve the incentives, citing their role in advancing EV adoption. While congressional action would be required to eliminate the credits outright, other measures, such as ending credits for leases or restricting program information, could be implemented unilaterally.
For now, Hyundai and Kia buyers can benefit from the credit for the 2025 tax year, with leasing options providing an alternative way to access the incentive.
