Electric vehicles are becoming more popular, especially with the $7,500 federal tax incentive, but not all EVs qualify for the credit. There’s a list of eligibility requirements for manufacturers and vehicles to meet in order to become eligible, and Hyundai Motor Group EVs, including those from Kia and Genesis, are finally eligible for the tax credit.
However, with the Trump administration stating they plan to end the EV tax credit, it could be too late.
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Hyundai, Kia, and Genesis EVs will qualify for the $7,500 federal tax credit
Hyundai had an impressive run in 2024, selling more than 44,000 Ioniq 5 models. While its EVs didn’t qualify for the tax credit in 2024, the automaker offered an equivalent incentive of $7,500 off MSRP for most of the year.
In order to continue its momentum, Hyundai performed a pretty spectacular speedrun, completing the construction of a massive EV manufacturing facility in just two years. With new EVs now rolling off the production line, a total of five Hyundai, Kia, and Genesis EVs will qualify for the $7,500 federal tax credit.
Kia
Vehicles must meet several requirements to qualify for the tax credit, including completing final assembly in North America and having a battery with a capacity of at least seven kilowatt hours.
Hyundai currently produces its EVs at the new Georgia facility, Kia EVs roll off the production line at its facility in West Point, Georgia, and Genesis EVs are built at Hyundai’s plant in Montgomery, Alabama.
The Korean automotive group’s models that qualify for the credit include the Kia EV6, Kia EV9, Genesis GV70, Hyundai Ioniq 5, and Hyundai Ioniq 9. So far, only 18 vehicles will qualify for the tax credit in 2025 as the requirements have become stricter.
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Hyundai opened its first EV plant in Georgia last year
Hyundai Motor Group broke ground on their new North American production facility back in October 2022, marking the beginning of what would become a $7.6 billion investment. The plant is currently the largest economic development project in the history of Georgia.
Hyundai Motor Group’s Metaplant America (HMGMA) went online in October 2024, just two years after construction began. The fast-tracked project marks the Korean automotive group’s commitment to maintaining its stance as a top competitor in the EV space, with the Ioniq 5 leading Hyundai’s EV sales in 2024.
With the addition of its eighteenth supplier in September 2024, Hyundai continues to build its extensive supply chain within the United States. Shinsung Petrochemical, an automotive sealant company, invested over $11 million in a new manufacturing facility.
Hyundai’s production facility also adds another 8,500 jobs to the area. Since 2018, EV production and clean energy projects have attracted more than 36,000 jobs and $28 billion in investments to Georgia.
“The last few years have been historic for Georgia in many ways, with generational investments in automotive and other key industries creating hope and opportunities for Georgians across the state,” said Commissioner Pat Wilson.
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Trump administration plans to end the EV tax credit
In an interview with Reuters, the Trump transition team confirmed they planned to end the $7,500 consumer tax credit for EVs. Representatives of Tesla, the nation’s largest EV manufacturer, support ending the subsidy. Cutting the tax credit would come as a part of broad tax reform legislation.
While Tesla CEO Elon Musk has previously stated losing the tax credit would likely benefit Tesla in the long term, other automakers may not fare as well. In addition to Hyundai, Ford and General Motors would struggle to make EVs more viable as they struggle to cut manufacturing costs and would prefer to save the tax credit.
The United Auto Workers Labor Union also supports the $7,500 incentive. General Motors reportedly plans to increase its EV production but wants to cut its annual EV losses by up to $4 billion in 2025. Ford expects to record a $5 billion loss on EV and software.
Back in September 2024, Hyundai and General Motors signed a non-binding agreement of memorandum to work together to cut costs.
“Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” said Mary Barra, Chair and CEO of GM.
Final thoughts
Hyundai Motor Group’s two-year construction-to-production timeline of its new Metaplant in Georgia is a feat in and of itself. The $7.6 billion investment puts Korean EVs on a level playing field with competing automakers in the United States, but the rug could be pulled out from under them.
If the Trump administration, or rather, Congress, cuts the federal tax credit from the tax code, will Hyundai Motor Group’s efforts all be for naught? While yes, the credit’s death is not an absolute certainty, its fate is up in the air.