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Hyundai’s flagship electric crossover, the IONIQ 5, is once again eligible for the full $7,500 federal EV tax credit, according to the latest update from the U.S. Environmental Protection Agency (EPA). After months of ineligibility despite being manufactured domestically, the 2025 IONIQ 5 now qualifies under the revised rules, bringing welcome news to American EV buyers.
Assembled in the U.S., Now Back on the List
Although Hyundai began assembling the IONIQ 5 at its Metaplant America facility in Georgia in late 2024, the model had been absent from the EPA’s list of eligible vehicles due to compliance delays with updated battery sourcing and assembly requirements. As of May 1, 2025, those issues have been resolved.
Cash and finance customers can now claim the tax incentive, not just lease customers who could access the benefit under a workaround loophole. This is a significant win for buyers seeking a stylish, high-tech EV with a generous range and quick charging.
Income Limits Still Apply
To be eligible for the federal tax credit, buyers must meet the following income thresholds:
- $300,000 or less for joint filers
- $225,000 for heads of household
- $150,000 for single filers
Additionally, the IONIQ 5’s MSRP must be under $80,000, which all current trim levels comply with.
New 2025 Features Sweeten the Deal
The 2025 Hyundai IONIQ 5 isn’t just back on the tax credit list it’s arriving with notable upgrades. Among them:
- A refreshed design and interior enhancements
- A new rally-inspired XRT trim level
- Continued support for ultra-fast 800V charging
- Estimated range up to 303 miles depending on the variant
With the tax credit factored in, pricing now ranges from approximately $36,575 to $49,475, making the IONIQ 5 a competitive and attractive option in the EV market.
Bottom Line
The return of the $7,500 EV tax credit eligibility for the Hyundai IONIQ 5 is a game changer for American buyers. With strong performance, premium tech, and increased affordability, Hyundai’s electric hatchback is positioned to reclaim its place as a top contender in the U.S. EV landscape.
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