Do the Kia EV6 and EV9 Qualify for a Tax Credit?

Are you interested in switching to an electric vehicle but unsure where to start? Have you seen the modern and stylish Kia EV6 or EV9 cruising around Lynn, Massachusetts, and want to learn more? If so, you’re in the right place. The team at Pride Kia has all the information you need about the latest EV6 and EV9 models, including whether they qualify for the federal tax credit under the Inflation Reduction Act of 2022. We’ll cover all the details about the EV tax credit to ensure you make an informed decision before buying a Kia EV6 or EV9.

What Is a Federal Tax Credit for EVs?

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New Kia EVs For Sale

As a part of the Inflation Reduction Act of 2022, some EVs are eligible for a federal tax credit that helps offset the purchase cost. Think of it as an incentive to switch from gas to electric power. It’s now easier to meet the requirements and receive the tax credit of up to $7,500 than previously. 

Instead of waiting until tax season and filling out the correct forms, you’ll instantly get your credit as soon as you buy an EV at Pride Kia. We can find out if you and the vehicle qualify for the credit, fill out the application, and ensure you get the funds immediately. The credit will apply to your new EV purchase, reducing the amount you pay at closing.

What Are the Eligibility Criteria for the EV Tax Credit?

With the EV tax credit comes some specific eligibility criteria. For example, an automaker must manufacture the EV in North America. An EV’s battery should be at least partially assembled or produced in the U.S., and the minerals for the battery must be extracted or processed in the U.S. or with a free-trade partner. Battery components mustn’t be sourced from a designated country of concern. The EV also must have a price tag of less than $55,000 for a sedan or smaller vehicle or less than $80,000 for SUVs.

Buyers must meet income requirements to be eligible for the new EV tax credit. You can fulfill the conditions with a gross annual household income of up to $300,000, a head of household yearly income of less than $225,000, and a single filer income of less than $150,000. Some used EVs may now be entitled to a tax credit of up to $4,000 when purchased from an authorized dealership. A used EV must also be a one-owner vehicle to qualify.

EV manufacturers had a sales cap of 200,000 vehicles to qualify for the previous tax credit. As the new requirement lifts this cap on sales, vehicles that may have reached these sales figures can still be eligible for the credit if they meet the other eligibility guidelines. In addition, new vehicles can join the list of eligible EVs if they adjust their manufacturing and sourcing to meet the new conditions.

Does the Kia EV6 Qualify for the Federal Tax Credit?

The good news is that if you lease the 2024 Kia EV6, you’ll get the full $7,500 tax credit to apply toward your lease at signing because leasing an EV isn’t subject to the same requirements as buying. As the EV6 is manufactured in South Korea, it won’t qualify for the EV tax credit under the new rules if you finance or purchase the vehicle. Of course, when Kia shifts its EV manufacturing to the U.S., the EV6 may become eligible for the tax credit.

Once you get behind the wheel of the Kia EV6, you may not mind that it doesn’t qualify for the tax credit, as the SUV is comfortable, spacious, and fun to drive. It has a maximum all-electric EPA-estimated range of 310 miles and can charge from 10% to 80% using a DC fast charger in as little as 18 minutes.

Does the Kia EV9 Qualify for the Federal Tax Credit?

Kia manufactures the 2024 Kia EV9 in South Korea. However, this year it plans to begin manufacturing the EV9 at its plant in West Point, Georgia. The EV9 should meet the eligibility requirements for the tax credit by 2025. Leasing an EV9 allows you to receive the full $7,500 tax credit because the car doesn’t have to meet the same eligibility guidelines. If you want to lease a new EV9, talk to one of our representatives.

Driving the EV9 comes with many benefits, including an exceptional 304-mile driving range and a roomy interior with seating for up to seven passengers. DC fast charging can take your EV9’s battery from 10% to 80% in under 30 minutes, while over-the-air updates are convenient and ensure you have the latest features.

Are There Additional Incentives for Purchasing an EV6 or EV9?

Although the Kia EV6 and EV9 aren’t currently eligible for the federal tax credit, there are other incentives you might take advantage of if you meet the criteria. Kia offers a cash back incentive of up to $9,000 for buying an EV6 from a participating dealership. You might also qualify for special deals on leasing the EV6 or low interest rates on financing.

Many local governments, including Massachusetts, offer tax credits and incentives to businesses and individuals for buying low-emissions vehicles. In Massachusetts, you can apply for an electric vehicle rebate of up to $6,000. This rebate is available through the Massachusetts Offers Rebates for Electric Vehicles program.

Learn More About EV Benefits at Pride Kia

You can’t get the EV tax credit for the EV6 or EV9 currently unless you lease one, but this may change in the future as Kia makes changes to manufacturing so it can meet the requirements for this government tax credit. To learn more about the benefits of driving the EV6 or EV9, stop by Pride Kia today. We have all the latest information on the EV tax credit to help you save on your purchase. Contact us if you have questions or want to schedule a test drive of these exciting new all-electric SUVs from Kia.