The Environmental Protection Agency (EPA) has added more electric vehicles (EVs) to its eligibility list:
- 2025 Genesis Electrified GV70: Starts at $66,950, with a premium option at $73,750.
- 2025 Hyundai Ioniq 5: Priced between $43,975 and $67,575, all models are eligible.
- 2026 Hyundai Ioniq 9: Pricing details are awaited, but it is eligible for the credit upon release.
- 2026 Kia EV6 and Kia EV9: Newly eligible, with final pricing yet to be announced.
The federal tax credit comes from the Inflation Reduction Act enacted under the Biden administration. It can be applied during purchase or used to reduce taxes. To qualify, vehicles must be manufactured in North America:
- Cars: Must have a price limit of $55,000.
- Light Trucks/SUVs: Must have a price limit under $80,000.
A loophole allows leases to be classified as commercial vehicles, which are not subject to MSRP limits. However, with the Trump administration considering eliminating EV credits, the program's future remains uncertain.
The Cybertruck and other major EVs gain a competitive advantage with the recent eligibility for a significant tax credit. While this is advantageous for potential buyers, changing administration policies might soon alter the landscape.
