Hyundai IONIQ 5 Returns to Full $7,500 Federal EV Tax Credit Eligibility

The Hyundai IONIQ 5, which has recently undergone upgrades for 2025, has made headlines with the announcement of its new XRT trim level designed for rally enthusiasts.

However, perhaps the most significant news for prospective buyers is that the IONIQ 5 has regained eligibility for the full $7,500 federal EV tax credit. This comes after its absence from the EPA’s list of rebate-eligible vehicles despite being assembled at Hyundai’s Georgia plant.

As of May 1st, the updated EPA list now includes the 2025 IONIQ 5, allowing cash and payment buyers to access the full federal incentive.

Ioniq 5’s Price Drops Significantly Thanks to Federal Incentives

To qualify, buyers need to have an income below $300,000 for married couples filing jointly, less than $225,000 for heads of households, or under $150,000 for individuals. Consequently, with the incentive factored in, the final price of the IONIQ 5 ranges from approximately $36,575 to $49,475, well below the $80,000 cap set by the federal government.

In a show of its performance capabilities, Hyundai is also competing in the grueling One Lap of America event, entering a factory-sealed IONIQ 5 N, which boasts a hefty 601 horsepower, in the Alternative Fuels class.

This prestigious motorsport competition is known for its demanding challenges that test both amateur and professional drivers. Over eight days, competitors navigate a series of timed events at multiple racetracks across the country, highlighting the durability and performance of their vehicles.

“Electrification means it’s finally possible to have huge power without huge compromises in a street car,” said Tom Suddard, one of the drivers participating in the event. The One Lap of America event will feature 86 teams tackling 17 scored events, further proving the potential of the electrified IONIQ 5 in a competitive setting.

As Hyundai’s journey continues, enthusiasts and buyers alike are eager to see how the latest updates and performance indicators will impact the IONIQ 5’s reception in the market.