The 2025 Hyundai IONIQ 5 electric vehicle has regained eligibility for the full $7,500 federal Tax Credit, effective May 1, 2025. The vehicle was added back to the list of eligible models maintained by the Department of Energy.
Previously, the IONIQ 5 had lost eligibility for the credit because it did not meet the requirements of the Inflation Reduction Act regarding domestic manufacturing and battery component sourcing.
The change follows increased production of the IONIQ 5 at Hyundai’s assembly plant in Georgia. The company has been ramping up US output for several months.
Sources familiar with the matter indicate that changes in the battery supply chain also contributed to the vehicle meeting the requirements. SK On, the battery supplier for the IONIQ 5, has reportedly shifted some production and sourcing for US-bound vehicles to its manufacturing facility in Georgia.
The federal incentive is available to individuals purchasing the vehicle who meet specific income limitations. These limits are set at $300,000 adjusted gross income for married couples filing jointly, $225,000 for heads of household, and $150,000 for individuals.
With the $7,500 credit, the effective price for a new 2025 IONIQ 5 falls within a range well below the program's MSRP cap for SUVs.
The vehicle had been assembled at Hyundai’s plant in Ulsan, South Korea, and shipped to the US before the recent shift in production. Increased output at the Georgia facility has reportedly met US demand levels in recent months.
Other Hyundai models like the IONIQ 9 and the Genesis GV70 are also expected to pursue eligibility as manufacturing plans in the US proceed. Hyundai Motor Group has stated plans to increase its total annual production capacity in the US to up to 1.2 million vehicles.
