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Hyundai EVs to qualify for U.S. tax credits for the first time

Published: 03 Jan. 2025, 10:53

A Hyundai electric Ioniq 5 is parked at the National Stock Exchange during the listing ceremony of Hyundai Motor India Limited IPO in Mumbai, India, Oct. 22. [REUTERS]

Hyundai Motor Group's five EV models will be subject to the U.S. tax credit program for EV purchases this year for the first time, industry sources said Thursday.

According to the sources, purchasers of Hyundai and its sister Kia's five EV models — Ioniq 5, Ioniq 9, EV6, EV9 and Genesis GV70 — will be able to receive up to $7,500 in tax benefits, a key component of the Biden administration's so-called Inflation Reduction Act (IRA).

The IRA, signed into law by President Joe Biden in August 2022, offers tax credits to each buyer of a new EV that was assembled in North America and made with minerals mined and processed in the United States or countries and regions that have free trade agreements with Washington.

However, the incoming Trump administration may end or scale down the tax benefit program.

With the tax credits offered to Hyundai's EV purchases, Korea's top automaking group will get a further boost in selling EVs in the United States.

In the first three quarters of last year, Hyundai and its sister Kia sold a combined 91,348 units in the United States, up 30.3 percent from the same period a year earlier.

Yonhap