Kia EV6 Tax Credit Eligibility

The Kia EV6 is no longer eligible for a federal tax credit from the IRS, as conditions for eligibility changed in 2022.
Written by Kathryn Mae Kurlychek
Reviewed by Kathleen Flear
As of August 16, 2022, the Kia EV6 is no longer eligible for a federal tax credit, since its assembly does not take place in North America
Electric vehicles exist in an ever-changing landscape that continues to make room for renewable energy solutions. As part of encouraging more drivers to invest in EVs, the federal government began offering tax incentives back in 2010, with credits ranging between $2,500 to $7,500 depending on the type of battery used. 
If you’re looking at the Kia EV6, you’re probably wondering whether or not it’s eligible for a federal tax credit—and if it’s not, is it still worth the buy? In this article, we’ll be answering all your questions so you can save on fuel and
car insurance
costs for your next electric vehicle. 
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Is the Kia EV6 eligible for the federal tax credit?

Unfortunately, the Kia EV6 is no longer eligible for any federal tax credits from the IRS. The EV6 lost its tax eligibility in 2022 when federal guidelines shifted to exclude vehicles not assembled in North America. 
The change came with the Inflation Reduction Act, which refocuses federal investments on domestic production, and was signed into law by President Biden on August 16, 2022. As part of the new law, federal EV tax credits have been limited to vehicles whose final assembly takes place in North America
Since the Kia EV6 is assembled in South Korea, it does not meet the new conditions for federal EV tax credits—and neither does the automaker’s other all-electric vehicle, the compact
Kia Niro EV
However, you could potentially still qualify for the tax credit if you lease the EV6 instead of buying it. The caveat comes in the form of a commercial credit, which is a type of tax break received by the dealership for leasing an EV—and one that could possibly be passed down to you. 

What you should know about the new federal EV tax credit requirements

Originally, the federal EV tax credit was introduced as an incentive to push consumers toward partially or fully electric cars, with an automatic cap for automakers who were able to sell over 200,000 electric models. But the Inflation Reduction Act of 2022 introduced a whole host of new and complex laws that put more stringent requirements on EV tax credit eligibility. 
For one, there are now income requirements. Single car buyers can only qualify if they make up to $150,000 a year, while buyers who file their taxes jointly with a spouse have an income limit of $300,000. 
There are also cost restrictions. As of January 1st, 2023, certain EVs are no longer eligible if their starting MSRP is above a certain value. For sedans, that cap is $55,000, while trucks, vans, and SUVs have a price cap of $80,000. For used EVs, the price cap is $25,000 regardless of make or body style. 
But by far, the biggest hurdle for automakers will be new requirements for battery construction. To qualify for tax credits, EV batteries must now contain a specified percentage of materials sourced from North America (or a U.S. free-trade partner) in addition to being manufactured and assembled in North America. Currently, few electric vehicles on the market meet those requirements—meaning it’ll be hard to qualify for a federal tax credit in 2023. 
Additional stipulations are expected to be introduced in March 2023, which could possibly lower the amount of credit that buyers of certain EVs are eligible for.  

Other electric vehicle incentives

Keep in mind that a federal tax credit from the IRS isn’t the only type of incentive out there for buying an electric vehicle or plug-in hybrid car. Most states offer rebates and state-sanctioned credits to buyers of electric vehicles, which can help cover the costs of installing a charger in your home. 
To learn what types of rebates you qualify for, you should look for incentive programs in your area. For example, Colorado offers EV incentives up to $2,500 for light passenger vehicles (or possibly more for trucks), while
California’s electric vehicle incentives
include rebates up to $7,000
MORE: New York electric vehicle incentives

Is the Kia EV6 still worth buying? 

So, you won’t get a federal tax credit for a Kia EV6. Does that mean it’s not worth it anymore? 
While we can’t convince you to buy (or not buy) any vehicle, here’s what you should know: the Kia EV6 has an impressive real-world range, a powerful engine, and tons of positive reviews. Unlike the Kia Niro, which was originally designed as a hybrid model before going all-electric in 2018, the EV6 was designed as an EV from the outset. That means it’s sleeker and more efficient—and its relatively recent debut also makes it compatible with the latest EV charging technology, including high-output DC fast charging stations. 
The estimated range of the EV6 is a whopping 339 miles (which is more than the Tesla Model Y!) although the real-world range ranks closer to 310 miles (still more than the Model Y). Couple that with a battery pack capable of 320 horsepower and an ability to reach up to 80% charge in just eighteen minutes (when using a 350-kW charger) and you’ve got an energy-savvy vehicle that’s also fun to drive.
So much fun, in fact, that J.D. Power gives the EV6 a score of 95/100 for its driving experience! It’s got more responsive steering than Hyundai’s
Ioniq 5
and quicker acceleration than Ford’s
Mustang Mach-E
, with the range and reliability of a Tesla. 
Bottom line: the Kia EV6 is probably still worth the buy. Without the federal tax credit, it may be $7,500 more expensive—but the trade-off is a seriously smooth and powerful electric vehicle that’s easy to drive every day. But if you’re balking at that $48,000 price tag, it’s worthwhile to check out other options before coming to a final decision.  

What to buy instead of a Kia EV6 Prime

If you’re not sold on the Kia EV6—or you’d prefer to invest in an EV that’s actually eligible for the federal tax credit—you still have options. Just about every automaker, from
, offers an electric or hybrid SUV. But what should you buy if you’re looking for a new car that cuts down fuel costs without emptying your wallet? Here’s what we’d suggest. 

If you really want the federal tax credit: 2023 Volkswagen ID.4

Starting price: $38,995
Possible tax credit: Up to $7,500
The newest
Volkswagen ID.4
is currently still eligible for the full federal tax credit of $7,500—although exactly how much of that credit you can apply to your taxes will depend on how much you owe on taxes—if you owe at least $7,500 or more at the time of filing, then you’re likely to see the full federal benefit. 
Outside of qualifying for the federal tax credit, the ID.4 is also a smart little electric SUV. It’s got seating for up to five passengers and one of the biggest cargo bays of any electric SUV currently on the market (made bigger by its 60/40 rear-split seating). Its 82-kWh battery pack has a maximum range of 275 miles and comes available in either rear-wheel drive format or a higher-horsepower, all-wheel drive configuration. 
Another benefit to the ID.4? It’s nearly $10,000 cheaper than the EV6! 

If you just want a great EV: 2023 Hyundai Ioniq 5

Starting price: $41,450
The Hyundai Ioniq 5 and the Kia EV6 share a frame—so if you like the look of Kia’s all-electric SUV, you’re likely to find the Ioniq 5 appealing, too. And there’s a lot more to love about the Ioniq 5 than its stylish appearance and cheaper price tag. As the recipient of Car and Driver’s 2022 EV of the Year award, the Ioniq 5 is a surprisingly affordable electric SUV with impressive specs: charging speeds up to 350 kW at DC fast charging stations, a maximum driving range of 303 miles, and a powerful lithium-polymer battery can deliver 320 horsepower and 446 lb-ft of torque that takes drivers from zero to 60 in just 4.7 seconds. 
It also has a relatively low center of gravity that makes handling and turning a breeze. And did we mention its semi-autonomous Highway Driver Assist 2 mode? If the Ioniq 5 isn’t a fun EV to drive, we don’t know what is!
MORE: There’s more to the Hyundai Ioniq 5 than meets the eye

If you’re looking for a premium alternative: 2023 Volvo XC40 Recharge

Starting price: $53,550
Possible tax credit: Up to $7,500
Like its gas-powered counterpart, the XC40 Recharge is a compact SUV that packs tons of premium features even into the base model, from a roomy cabin to an enhanced suite of standard driver’s assistance features. Technically speaking, the Volvo XC40 Recharge may qualify for the full federal tax credit—making the extra couple of thousand dollars on its price tag potentially worth spending. But exactly how much credit you receive is subject to the growing restrictions placed on automakers and electric vehicles. 
MORE: Volvo S60 towing capacity
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