Hyundai and Kia have finally qualified for the $7,500 federal electric vehicle (EV) tax credit in the United States, with five of their models now eligible for the incentive. According to Electrek, the new models include popular vehicles like the Hyundai Ioniq 5 crossover SUV and Kia EV9 three-row family hauler, bringing the total number of eligible EVs and plug-in hybrids to 25 across 10 brands.

The Biden Administration's EV tax credit rules, which came into effect in 2022, mandate that vehicles must be built in North America to qualify for the credit, with additional requirements for sourcing battery components. Hyundai and Kia had initially threatened to take legal action against the Inflation Reduction Act, which expanded the available credits but left their Korean-built EVs ineligible. However, with Hyundai's recent opening of a $7.6 billion EV manufacturing plant in Georgia, their vehicles now meet the eligibility criteria.

The Georgia plant will produce the NACS-equipped 2025 Ioniq 5 and the upcoming Ioniq 9 three-row SUV, both of which are now eligible for the tax credit. Hyundai, Kia, and Genesis models were added to the Federal Tax Credits list as of January 1st, 2025. While this development is a significant win for the Korean automakers, the future of the EV tax credit program remains uncertain under the new Trump administration.

During his campaign, President-elect Trump vowed to eliminate the EV incentives on "day one," a move that has been met with resistance from American automakers. However, unless Congress votes to eliminate the program, Hyundai and Kia buyers could still benefit from the incentive for the 2025 tax year or take advantage of it through a lease. According to The New York Times, Trump could also attempt to take other actions without Congress, such as eliminating the credit for leases or removing websites with information about the program.

The implications of the EV tax credit program's potential elimination are significant, with many experts arguing that it would hinder the adoption of electric vehicles in the United States. The program has been instrumental in encouraging consumers to switch to eco-friendly alternatives, and its removal could have far-reaching consequences for the environment and the automotive industry as a whole.

As the situation continues to unfold, one thing is certain – the fate of the EV tax credit program hangs in the balance. While Hyundai and Kia's eligibility is a welcome development, the uncertainty surrounding the program's future serves as a reminder that the electric vehicle landscape is constantly evolving, and that policymakers must work to create a stable and supportive environment for the industry to thrive.