More consumers are turning to EVs as fuel prices rise and the federal EV tax credit promises to lower purchasing costs. However, sorting through your options with EVs can be a challenge. One relatively new option is the Hyundai Ioniq 5. If you find yourself thinking of purchasing this electric SUV, you’ll probably want to make sure it qualifies for the tax credit before handing over your hard-earned cash. So, does the Ioniq 5 qualify?
What is the federal EV tax credit?
In certain instances, the federal EV tax credit will provide a car purchaser up to $7,500 in rebates for the purchase of a new electric vehicle. However, there are several requirements an electric vehicle must meet before it qualifies for the rebate.
A vehicle will only qualify for the rebate if its manufacturer has sold fewer than 200,000 units. For this reason, most Teslas are no longer eligible. EVs also must have been purchased new in or after 2010, must meet Clean Air Act requirements, and not weigh more than 14,000 pounds. In addition, to get the rebate, your EV battery must come with more than four kilowatt-hours.
Many states have their own EV incentives as well. If you’re wondering whether your state participates in such programs, you can look it up on the U.S. Department of Energy State Laws and Incentives page.
Here’s why the 2022 Hyundai Ioniq 5 qualifies for the federal EV tax credit
Fewer vehicles qualify for the federal EV tax credit as some of the more popular models have hit the crucial 200,000 units sold mark. However, the Hyundai Ioniq 5 has yet to hit that threshold so it still counts as a vehicle that can earn you the credit.
Per the U.S. Department of Energy, the Ioniq 5 gets a combined 110 MPGe. This affordable electric SUV offers a single motor option with a 77.4-kWh battery, 300-mile-range, and rear-wheel-drive platform or a dual-motor all-wheel drive option with a range of 244 miles.
All of this means that the Ioniq 5 meets the Clean Air Act and other requirements necessary for it to earn you a potential EV tax credit.
A look at the 2022 Hyundai Ioniq 5
The 2022 Hyundai Ioniq 5 gives consumers several options to choose from in terms of trims. The base trim, the SE, starts at $44,000. Like all trims, it features up to a 303-mile rear-wheel-drive all-electric range and 168 kW (the equivalent of 225 hp). According to Auto Trader, Hyundai’s SmartSense safety suite comes standard on the SE. It includes Forward Collision-Avoidance Assist, pedestrian and cyclist detection, reverse-collision-avoidance assist, and more.
The next-level trim, the SEL, starts at $46,250. In addition to the above, you get automatic flush exterior door handles and a hands-free power liftgate, along with leatherette seats and ambient lighting to add class to the interior. Highway Driving Assist II also comes standard with the SEL. The AWD dual-motor Ioniq 5 SEL starts at $49,400, offers 320 hp and a range of 256 miles.
Finally, there’s the Ioniq 5 Limited, which starts at $51,100. The Limited includes larger 20-in. wheels, a vision sunroof, and a head-up display that allows drivers to see specific information reflected on the windshield without taking their eyes off the road. A sliding center console provides extra room, and remote park assist allows you to enter or exit a parking space using your fob while you’re outside the vehicle.
With all of these perks, the Hyundai Ioniq 5 is certainly an option worth considering for anyone interested in taking advantage of the federal EV tax credit.