Hyundai Is Offering A $7,500 EV Credit — But There’s A Catch
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Just weeks after General Motors (GM) announced that it would offer rebates of up to $7,500 on certain electric vehicle (EV) models, another automaker, Hyundai, has followed suit. Hyundai is also offering up to $7,500 in savings on three of its EV models: the Ioniq 5, the Ioniq 6, and the Kona Electric. If you’re interested in taking advantage of the savings, however, you’ll have to act fast — the offer is only valid until January 31st.
GM and Hyundai are both hoping to reach consumers by bridging the gap created by big changes to the federal EV tax credit this year. The tax credit, which was expanded and made law as part of 2022’s Inflation Reduction Act, gives EV buyers between $3,750 and $7,500 off the purchase of a new EV or hybrid plug-in. But the list of EVs that qualify for the full tax credit shrunk dramatically on January 1, when the government placed new restrictions on EV manufacturers, including suggested retail pricing and the sourcing of materials for batteries and other components.
Hyundai’s Ioniq and Kona models no longer qualify, and neither do many GM models, as previously reported by Fatherly.
While it may be harder to find a car that qualifies for the federal EV tax credit right now, it’s never been easier to take advantage of the actual cash benefit. Starting this year, EV buyers can take advantage of the tax credit at the point of purchase of the car. In other words, they don’t have to wait until filing taxes to get the $7,500 off their car.
And the offers from Hyundai and GM join other new incentives: The EV tax credit leasing loophole allows EV leasers to use the tax credit on any EV model, not just those that qualify for the federal tax credit; used EVs can qualify for up to $4,000 in federal tax credits; and now many states are enacting their own EV tax credits. In fact, the Tax Foundation reports that nearly half of states across the country are offering their own tax credits for EVs.