The Hyundai IONIQ 5 has made a comeback in a big way for the 2025 model year. With a slew of upgrades and the introduction of a rally-focused XRT trim level, this Made in America electric vehicle has now regained eligibility for the full $7,500 federal EV tax credit.
Previously, despite being manufactured at Hyundai’s Georgia plant for the past four months, the IONIQ 5 was conspicuously absent from the EPA’s list of rebate-eligible vehicles. However, as of May 1st, a fresh update to the list has brought the Hyundai IONIQ 5 back into the rebate game.
It’s worth noting that lease customers were able to access the incentive under certain conditions, but the recent update now allows cash and payment buyers to take advantage of the full Federal incentive as well. To qualify, individuals must earn less than $150,000, heads of household less than $225,000, and married couples filing jointly less than $300,000.
With the $7,500 federal tax credit in play, buyers can now acquire a new 2025 IONIQ 5 for a price ranging from $36,575 to $49,475, comfortably below the $80,000 Federal MSRP cap.
In a celebratory move, Hyundai has announced its participation in the One Lap of America road rally and race event. Teaming up with Grassroots Motorsports, Hyundai will field a stock 601 hp 2025 IONIQ 5 N in the Alternative Fuels class, with experienced drivers Andy Hollis and Tom Suddard at the helm.
The One Lap of America event is known for its grueling challenges, including timed events at various tracks and thousands of miles of travel in between. This year, 86 teams will compete in 17 scored events over eight days at renowned tracks like Virginia International Raceway and NCM Motorsports Park.
Follow the Hyundai’s progress at the One Lap of America event and share your thoughts on this exciting new tax development in the comments section.
Sources and images for this article are credited to Hyundai, One Lap of America, and FuelEconomy.gov.
