- The 2025 Hyundai Ioniq 5 is back in the federal tax credit game.
- The EPA added the American-made EV to its list of eligible vehicles.
- The Ioniq 5 is built in Georgia with American-assembled battery packs from SK On.
The 2025 Hyundai Ioniq 5 has regained full eligibility for the $7,500 federal tax credit after a four month hiatus. Despite it being built in the United States at Hyundai Motor’s Metaplant in Georgia, the latest iteration of the electric crossover was nowhere to be seen on the EPA list of eligible vehicles.
This meant that the only way to benefit from the $7,500 incentive was to lease it, thanks to a loophole that allows any EV, irrespective of its country of origin, to benefit from the federal tax break that can be applied at the point of sale.
Now, though, the Ioniq 5 is back on the EPA’s list, which was updated two days ago, so customers who prefer to pay with cash can take advantage of the incentive and effectively lower the selling price of the EV by $7,500 when signing the contract. It’s important to note, however, that buyers still need to fall within the criteria for the 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 should not exceed $80,000 in the case of crossovers and SUVs. That’s good news for the Ioniq 5 because none of the trim levels go above that limit, so all versions are eligible for the federal incentive.
The 2025 Hyundai Ioniq 5 starts at $44,075, including shipping, for the base SE Standard range with rear-wheel drive and an EPA-rated driving range of 245 miles. The most expensive variant is the off-road-inspired Ioniq 5 XRT, which comes with black bumpers, all-terrain wheels, all-wheel drive, and a suspension lift. It starts at $56,975 and has an estimated driving range of 259 miles. The longest-range Ioniq 5 versions are the rear-wheel drive SE and SEL, which can go up to 318 miles on a full charge.
With the $7,500 federal tax credit thrown into the mix, the Ioniq 5 effectively costs between $36,575 and $49,475.
Late last year, Hyundai started building the Ioniq 5 in the United States using SK On batteries assembled in Hungary. For a few days in 2025, the Ioniq 5 appeared on the tax credit eligibility list, but was then pulled without notice. Following the decision, Hyundai offered a $7,500 discount when financing the car and said that it expects the EV to regain eligibility in the second quarter, when SK On’s Georgia battery factory would start supplying American-made cells.
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Source: Hyundai
