The Ioniq 5 is once again eligible for the $7,500 tax credit

By Nick Godt Published May 3, 2025

After a brief and confusing absence, the Hyundai Ioniq 5 is once again eligible for the full $7,500 federal tax credit — and this time, it’s sticking around (at least for now). So, what happened? Let’s unpack the ride.

The Ioniq 5, a sleek and tech-savvy electric crossover, initially made headlines not just for its design, but for being built at Hyundai’s brand-new Metaplant in Georgia. That domestic assembly qualified it for the EV tax credit under the Inflation Reduction Act (IRA), which requires vehicles to be made in North America with batteries sourced from trade-friendly countries. But early in 2025, the Ioniq 5 vanished from the list. Why? Likely due to its battery packs, which were then still being sourced from SK On’s Hungarian facility.

During that limbo, the only way to get the $7,500 incentive was to lease the vehicle—thanks to a legal loophole that treats leased EVs as “commercial vehicles,” skirting the strict sourcing requirements. Hyundai even stepped in with its own $7,500 discount for those financing or buying outright, softening the blow.

But as of late April 2025, the Ioniq 5 is officially back on the EPA’s eligibility list, thanks to Hyundai switching battery sourcing to SK On’s U.S.-based factory in Georgia. That means buyers can now get the tax credit up front at purchase—no lease gymnastics required.

Just make sure you qualify: Your adjusted gross income must fall below $300,000 (joint), $225,000 (head of household), or $150,000 (individual). Also, the vehicle’s MSRP must be under $80,000—which is no problem since the Ioniq 5 ranges from $44,075 to $56,975.

So if you’ve been eyeing an Ioniq 5, now’s a great time to plug in.