The 2025 Hyundai Ioniq 5 has made a comeback in the federal tax credit game, regaining full eligibility for the $7,500 incentive after a brief hiatus. Despite being built in the United States at Hyundai Motor’s Metaplant in Georgia, the latest version of the electric crossover was initially missing from the EPA’s list of eligible vehicles. This meant that the tax credit could only be applied if the vehicle was leased.
However, the Ioniq 5 is now back on the EPA’s list, allowing customers who prefer to purchase the vehicle outright to take advantage of the incentive. This effectively lowers the selling price of the EV by $7,500 at the time of purchase. It is important to note that buyers must still meet the criteria for yearly adjusted gross income, which is less than $300,000 for married couples filing jointly, less than $225,000 for heads of households, and less than $150,000 for all other filers.
Furthermore, the MSRP of the vehicle must not exceed $80,000 for crossovers and SUVs to be eligible for the tax credit. Fortunately, none of the trim levels of the Ioniq 5 surpass this limit, making all versions of the vehicle eligible for the incentive.
The 2025 Hyundai Ioniq 5 offers a range of options, starting at $44,075 for the base SE Standard range with rear-wheel drive and a 245-mile EPA-rated driving range. The most expensive variant, the Ioniq 5 XRT, starts at $56,975 and features all-wheel drive, black bumpers, all-terrain wheels, and a suspension lift with an estimated driving range of 259 miles. The rear-wheel drive SE and SEL versions offer the longest range of up to 318 miles on a full charge.
With the $7,500 federal tax credit, the cost of the Ioniq 5 effectively ranges from $36,575 to $49,475. Hyundai began producing the Ioniq 5 in the United States last year using SK On batteries assembled in Hungary. The EV briefly appeared on the tax credit eligibility list before being removed without notice. However, Hyundai offered a $7,500 discount for financing the vehicle and anticipated that the Ioniq 5 would regain eligibility once SK On’s Georgia battery factory started supplying American-made cells in the second quarter.
In conclusion, the 2025 Hyundai Ioniq 5’s return to the federal tax credit program is a significant development for customers looking to purchase an electric vehicle with a generous incentive. The vehicle’s range of options and pricing make it an attractive choice for environmentally conscious consumers seeking a reliable and efficient electric crossover.