Kia EV9 Full Tax Credit Could Be Delayed

By

Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

, Automotive Editor - February 23, 2024
2024 Kia EV9

The all-new Kia EV9 is one of the more exciting electric SUVs to come out recently. The EV9 is an affordable three-row midsize SUV in a segment that doesn’t have a lot of affordable three-row options. Unfortunately, while the EV9 is an exciting electric SUV that’s going to be incredibly popular, shoppers may want to hold off on purchasing a model.

Kia is getting ready for production of the EV9 to start at its factory in Georgia, with the electric SUV set to start going through the manufacturing process this spring. The plan is for EV9s to get to dealerships this summer. While producing the EV9 will help the electric SUV qualify for some portion of the federal EV tax credit, the EV9 may not qualify for the entirety of the $7,500 tax credit.

According to Automotive News, there’s a lot of uncertainty about whether the EV9 will be eligible for the full portion of the tax credit when it officially goes on sale. Ever since 2022, the federal tax credit has consistently changed, making it difficult for everyone, including automakers, to know whether their vehicles will be eligible for the tax credit.

On January 1, 2024, the list of eligible EVs shrank dramatically, as the federal government instituted new rules for the EV federal tax credit requirement. The new rule claims that EVs cannot have more than 2% of battery components from a country that is classified as a “foreign entity of concern,” which includes Russia and China.

2024 Kia EV9 Side Profile

From the sound of things, the EV9 may not be eligible for the federal EV tax credit when it first goes on sale because of the foreign entity requirement. Stuart Countess, CEO of Kia Georgia Inc., told Auto News that the EV9 plant will have to “go through a transition period” before it can begin using batteries that are assembled and sourced locally.

"We will receive a battery assembly to marry into the car that comes to us through Hyundai Mobis," Countess told the outlet, explaining that the packs will come from an existing Hyundai Motor Group facility or an external supplier.

As Auto News points out, Hyundai Motor Group is in the process of building new factories outside of Savannah, Georgia and in Bartow County, which is also in Georgia. The plant in Savanna is a joint venture with LG Energy Solution, while the one in Bartow County is the result of a partnership with South Korean battery supplier SK On. The battery facilities aren’t expected to start coming out with batteries until 2025.

At the moment, Kia is importing the EV9 from Korea, which means that it isn’t eligible for any portion of the federal tax credit. EV9s from South Korea will continue to be sold until Kia’s factory in Georgia goes live. Even though the EV9 isn’t eligible for any portion of the federal tax credit, Kia’s latest midsize SUV is doing incredibly well in terms of sales. To make the EV9 more affordable, the outlet claims that Kia is relying on a loophole in the federal tax credit that allows shoppers to get the full amount when the SUV is leased.

Automotive News claims that Kia sold 1,118 EV9 SUVs in 2023 and sales of the SUV increased to 1,408 units in January 2024. Kia is looking to sell 2,000 EV9s per month.

Pictured: 2024 Kia EV9

Source: Automotive News (Subscription Required)

Explore the Best EV Lease Deals

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

Privacy Terms of Use Your Privacy Choices Disclaimer Cookie Policy Manage Preferences
COPYRIGHT 1999-2024 MH Sub I, LLC dba CarsDirect.com