A Big Win for EV Buyers
The 2025 Hyundai Ioniq 5 is once again eligible for the full $7,500 federal EV tax credit. This is great news for buyers who prefer to purchase rather than lease. Previously, the only way to access the incentive was through leasing, due to temporary sourcing issues with the vehicle’s batteries.
Back on the List
Although the Ioniq 5 is built in Georgia, it briefly lost eligibility because its battery packs were sourced from SK On’s facility in Hungary. This didn’t meet the strict local content rules set by the Inflation Reduction Act. Now, Hyundai has shifted to using U.S.-assembled batteries from SK On’s new plant in Georgia, bringing the Ioniq 5 back into compliance. The EPA updated its list two days ago, confirming the change.
Who Can Claim the Credit?
Not everyone qualifies automatically. Buyers must meet income limits to claim the credit:
- Up to $300,000 for joint filers
- Up to $225,000 for heads of household
- Up to $150,000 for single filers
The vehicle must also be priced below $80,000. All 2025 Ioniq 5 trims fall within that range, meaning every model is eligible.
Big Savings Across the Lineup
The base SE Standard Range RWD model starts at $44,075 before incentives and offers a 245-mile EPA-rated range. With the tax credit, the effective price drops to $36,575.
The longest-range options are the SE and SEL RWD, which can travel up to 318 miles on a full charge. The top-trim XRT AWD comes with rugged styling, all-terrain tires, and a 259-mile range—priced at $49,475 after the credit.
Why It Matters
With full tax credit eligibility restored, Hyundai’s Ioniq 5 becomes one of the most compelling EV deals in the U.S. market. It combines long range, great design, and now a lower effective price—without requiring a lease. That’s a win for both Hyundai and everyday EV buyers.
