Hyundai and Kia EVs Qualify for Federal $7,500 Tax Credit

Hyundai, Kia, and Genesis Electric Vehicles Eligible for $7,500 Tax Credit

In a significant development for electric vehicle enthusiasts and potential buyers, five electric vehicle models from Hyundai, Kia, and Genesis have now qualified for the US’s $7,500 EV tax credit, as reported by Electrek. This change includes some of the popular models on the market, such as the Hyundai Ioniq 5 crossover SUV and the Kia EV9 three-row family hauler.

Current Landscape of Electric Vehicle Tax Credits

As it stands, a total of 25 electric vehicles and plug-in hybrids from 10 different brands are eligible for this tax credit. The Biden Administration introduced stringent EV tax credit rules, emphasizing the need for vehicles to be manufactured in North America and mandating specific requirements for sourcing battery components. These policies were aimed at boosting local manufacturing and reducing dependency on foreign supply chains.

Legal Challenges and Manufacturing Developments

Back in 2022, both Hyundai and Kia raised concerns regarding the Inflation Reduction Act, threatening legal action against the Biden administration after the updated credit structure rendered their foreign-manufactured EVs ineligible. Fast forward to today, Hyundai has taken significant steps to comply with the new regulations. The company has inaugurated a $7.6 billion EV manufacturing plant in Georgia aimed at producing NACS-equipped models for the 2025 market, including the Ioniq 5 and the anticipated three-row Ioniq 9.

The Future of EV Tax Incentives Under Potential Changes

Interestingly, while Hyundai and Kia are set to benefit from this tax credit, there are looming uncertainties about the future landscape of EV incentives. If the upcoming Trump administration implements substantial policy changes, this could impact the current benefits. During his campaign, the President-elect expressed intentions to revoke EV incentives from day one of his administration.

Implications for Consumers and Buyers

Despite these uncertainties, unless Congress votes against the program, buyers of Hyundai and Kia EVs may still be eligible to receive the tax incentive for the 2025 tax year. Additionally, customers may still be able to benefit from the tax credit through leasing options. Recent reports from The New York Times suggest that Trump could potentially take unilateral actions, such as eliminating credits for leases or restricting access to information about the program, without the need for Congressional approval.

Conclusion

The electric vehicle market continues to evolve within the context of government incentives and manufacturing capabilities. For those looking to purchase a new EV from Hyundai, Kia, or Genesis, it is essential to stay informed about both the opportunities and uncertainties that lie ahead.