Prospective buyers of Hyundai electric vehicles have the opportunity to take home some big-money bonuses, but time is running out on the promotion.
As explained in Bloomberg, Hyundai Motor Co. will give as much as $7,500 in cash bonuses to EV buyers in the United States through Jan. 31.
The promotion is an effort by Hyundai to “keep its cars competitive with automakers qualifying for tax credits under President Joe Biden’s Inflation Reduction Act,” per Blomberg. The company doesn’t have a U.S.-based factory, making its vehicles ineligible to meet the requirements of the Clean Tax Credit program in which buyers can get a tax credit of up to $7,500. Hyundai resorted to giving the equivalent in discounts.
The incentives apply to buyers of the Ioniq 5, Ioniq 6, and Kona Electric. Research by BloombergNEF found that Hyundai and its affiliate Kia sold over 69,000 electric vehicles in the U.S. in 2023, making it the second-biggest EV maker behind only Tesla.
The tax credit for EV buyers is part of an ongoing effort by the Biden administration to reduce the reliance on fossil fuels. However, only a few vehicles qualify for the credits, and Bloomberg noted that the list may continue to dwindle further as new rules are being put in place to discourage automakers from depending on Chinese suppliers for parts.
The IRS website lists the requirements for receiving a tax credit, which include your adjusted gross income and the vehicle’s manufacturer-suggested retail price. While EVs aren’t affordable for many consumers, recent price reductions and the tax credit program can help make it easier for those who desire to switch to battery-powered vehicles.
Hyundai is hoping to become eligible for the tax credit sooner rather than later, as the company is building an EV plant in Georgia with the goal of starting production later this year.
“What we decided is to double down,” Hyundai President and Global COO José Muñoz told the Associated Press. “We try to accelerate as much as possible, the project. And we are confident that the original date of January 2025 would be probably pulled ahead maybe three months or so. If we can, even more.”
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