The US Department of Energy has released its updated list of electric vehicles eligible for the $7,500 tax credit starting January 1, 2025, under the Inflation Reduction Act (IRA).
The number of eligible models has decreased from 49 to 25, with prominent models like the VW ID.4, Rivian R1T and R1S, and Nissan Leaf no longer qualifying.
In contrast, electric vehicles from Hyundai Group, including the Hyundai Ioniq 5 and Ioniq 9, Kia EV6 and EV9, and Genesis Electrified G70, have secured eligibility for the full credit.
Hyundai’s qualification stems from its recent investments in US manufacturing. Production at the Metaplant America facility in Georgia and assembly lines in Alabama and West Point have enabled compliance with the IRA’s stringent requirements on domestic sourcing of battery components and raw materials. Tesla’s Cybertruck also became eligible for the first time, with entry-level models priced under the $80,000 cap.
The policy changes, coupled with the potential for reduced tax credits under the incoming Trump administration, have created uncertainty for EV incentives.
While direct eligibility is tightening, foreign-manufactured EVs continue to benefit indirectly through commercial leasing programs that bypass assembly location criteria.
Source: fueleconomy.gov
