Electric vehicles (EVs) from Hyundai Motor Group are now eligible for tax credits of up to $7,500 (approximately 11 million won) per car under the Inflation Reduction Act (IRA), marking the first time the South Korean automaker’s models have qualified for the program. Enacted in 2022, the IRA is a landmark U.S. law aimed at strengthening domestic clean energy industries, including electric vehicles, solar power, and wind energy.
The tax credits are limited to EVs manufactured in the United States that comply with strict requirements for battery components and materials.
Previously, Hyundai and Kia were excluded from these benefits because their primary EV models were not produced locally, and their U.S.-made vehicles did not fulfill battery requirements. However, the October launch of Hyundai Motor Group Metaplant America (HMGMA) in Georgia, coupled with compliance with the IRA’s battery criteria, has positioned Hyundai as the second automaker after Tesla to secure the most models on the eligibility list, with five vehicles included.
On Jan. 1, the U.S. Department of Energy (DOE) released its annual list of EVs qualifying for IRA tax credits. Among the 25 models eligible this year are Hyundai’s IONIQ 5 and IONIQ 6, Kia’s EV6 and EV9, and Genesis Electrified GV70.
This represents a reduction from 34 eligible models in 2023 and 50 in 2022. Tesla continues to dominate with nine models, including the Cybertruck, Model 3, Model X, and Model Y. Ford and Chevrolet each have three models listed, Cadillac has two, and Chrysler, Honda, and Acura, Honda’s luxury brand, each have one.
Notably, European automakers such as Volkswagen and Audi were excluded for the second consecutive year. Additionally, Jeep and Rivian, which qualified in 2023, were absent from this year’s list.
Market analysts anticipate a surge in demand for qualifying vehicles early this year as consumers move to take advantage of tax credits ahead of potential policy changes. Vehicles on the current eligibility list qualify for tax credits if purchased by the end of this year.
However, the incoming administration of Donald Trump, set to take office on Jan. 20, has signaled intentions to repeal the program.
Despite previously missing out on IRA incentives, Hyundai and Kia ranked third in the U.S. EV market during the third quarter of last year, trailing only Tesla and General Motors.
