SEOUL: Hyundai Motor Group's five electric vehicle (EV) models will qualify for the U.S. tax credit program for EV purchases this year, marking a significant development for the South Korean automaker. Industry sources indicated that this is the first time these models will be eligible for the tax benefits.
According to Yonhap News Agency, buyers of Hyundai and its sister brand Kia's five EV models-namely the Ioniq 5, Ioniq 9, EV6, EV9, and Genesis GV70-will be entitled to receive up to $7,500 in tax credits. This incentive is a core component of the Biden administration's Inflation Reduction Act (IRA), which was enacted in August 2022. The IRA's tax credits apply to vehicles assembled in North America and made with minerals mined and processed in the United States or in countries with free trade agreements with Washington.
The incoming Trump administration, however, may consider ending or scaling down the tax benefit program. Despite this uncertainty, the tax credits currently offered to Hyundai's EV purchases are expected to provide a significant boost to South Korea's leading automaker in the U.S. market.
In the first three quarters of the previous year, Hyundai and Kia sold a combined total of 91,348 units in the United States, representing a 30.3 percent increase from the same period the year before. The availability of tax credits is anticipated to further enhance the appeal of Hyundai's EV offerings to American consumers.