The 2025 Hyundai Ioniq 5 has regained eligibility for the full $7,500 federal electric vehicle (EV) tax credit in the United States, according to an update from the Environmental Protection Agency (EPA), following a four-month period during which the vehicle was excluded from the list of qualified models.
Although the Ioniq 5 is assembled at Hyundai Motorâs Metaplant in Georgia, its removal from the list earlier this year was linked to battery sourcing requirements under the Inflation Reduction Act.
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During that period, customers could only benefit from the incentive by leasing the vehicle, due to a provision that allowed leased EVs to qualify regardless of their production origin.
With the model now restored to the EPAâs list, retail buyers can again apply the tax credit at the point of sale, effectively lowering the purchase price by $7,500.
The entry-level SE Standard Range trim starts at $44,075, while the off-road-oriented Ioniq 5 XRT variant is priced at $56,975. When factoring in the tax credit, the effective price range falls between $36,575 and $49,475, depending on the selected configuration.
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All trim levels of the Ioniq 5 fall under the $80,000 MSRP cap for tax credit eligibility. Buyers must also meet income thresholds of less than $300,000 for married couples filing jointly, $225,000 for heads of household, and $150,000 for individual filers.
The Ioniq 5 was briefly listed earlier in 2025 before being pulled without official explanation. Hyundai had previously indicated that eligibility would likely return in the second quarter, once its battery partner SK On began supplying cells from its new Georgia facility. Until then, the automaker offered equivalent incentives through financing promotions.