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Hyundai matches EV tax credits with $7,500 cash bonus

Very few cars qualify for the EV tax credits, and the list of acceptable models might get even smaller due to strict regulations.

Hyundai is attempting to maintain its competitiveness with automakers eligible for tax credits under President Joe Biden’s Inflation Reduction Act by offering up to $7,500 in cash bonuses to U.S. buyers of EVs. The promotion is available for the Ioniq 5, Ioniq 6, and Kona Electric and will run until January 31. 

Moreover, the South Korean automaker does not qualify for the clean vehicle tax credit program, which aims to promote domestic production of EVs and their components. To address this, Hyundai is planning to establish an EV plant in Georgia, which could start producing electric cars by the end of 2024. According to BloombergNEF, Hyundai and its affiliate Kia sold 69,259 battery-powered cars in the U.S. in 2023, making them the second-largest electric vehicle manufacturer following Tesla.

Nevertheless, very few cars qualify for the EV tax credits, and the list of acceptable models might get even smaller due to strict regulations forcing manufacturers to lessen their reliance on Chinese suppliers for parts.

However, the Biden administration wants to shift the economy away from fossil fuels and revitalize American industry. The IRA also touches on another national security goal: to minimize the U.S. and its allies’ reliance on supply lines that it perceives as susceptible to China.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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