The Hyundai IONIQ 5, with its new rally-focused XRT trim level launched for 2025, has qualified for the federal EV Tax Credit worth $7,500 yet again. The car was previously missing from the EPA’s list of vehicles eligible for a rebate. This new update is a major relief for those falling under the announced income threshold. If you are someone who wants to know more about Hyundai IONIQ 5 qualifying for the $7,500 tax credit, this article is for you. It brings you everything you need to know about the tax credit, along with information on who is eligible for it and how much the EV will now cost.
Why Was The Hyundai IONIQ 5 Not On The EPA’s List Of Rebate-eligible Vehicles Before?
Hyundai’s IQNIQ 5 is a sleek electric vehicle that is laced with modern technology and has trended on the internet for its unique design. It also became a major headline in the EV industry for being manufactured at the brand-new Metaplant located in Georgia. People assumed this would officially qualify IQNIQ 5 for the EV tax credit under the Inflation Reduction Act. However, it still remained missing from the EPA’s list of vehicles eligible for a rebate. The reason for this is assumed to be the battery packs it was sourcing from SK On’s Hungarian facility.
Who Was Getting The $7,500 Tax Credit On Hyundai’s IQNIQ 5 Earlier?
For the last six months, Hyundai’s IQNIQ 5 remained missing from the EPA’s list of vehicles eligible for a rebate. However, there were still some people who were getting the $7,500 tax credit on it. People who were leasing IQNIQ 5 were the only ones getting the tax credit. This was because of a loophole that treated leased EVs as commercial vehicles. However, Hyundai introduced its own discount worth $7,500 for those financing or buying outright, which significantly reduced the burden on the buyers.
Hyundai’s IQNIQ 5 Now Qualifies For The $7,500 Tax Credit
According to the latest updated EPA list of vehicles eligible for rebate, Hyundai’s IQNIQ 5 has officially qualified for the $7,500 tax credit yet again. This means cash and payment buyers can also enjoy the full Federal incentive. It successfully qualified for the rebate because the company switched to sourcing batteries from SK On’s U.S.-based factory in Georgia. The buyers of Hyundai’s IQNIQ 5 will not have to consider leasing the vehicle just so that they can get the $7,500 tax credit.
How To Get The $7,500 Tax Credit On The Purchase Of Hyundai’s IQNIQ 5?
According to the reports, to establish yourself as eligible for getting the $7,500 tax credit on your purchase of Hyundai’s IQNIQ 5, your income must be under the announced thresholds. In case you are a married couple going to buy the EV, your gross income must fall under $300,000. Similarly, if you are the head of the household, your gross income must fall under $225,000. On the other hand, if you are an individual going to buy the EV, your gross income must fall under $150,000. Another eligibility requirement is that the MSRP of the vehicle must fall under $80,000. This requirement is not a problem in Hyundai’s IQNIQ 5 as its price ranges from $44,075 to $56,975.
