As a hybrid vehicle, the 2022 Toyota Sienna is not eligible for federal tax credits under the Inflation Reduction Act. Only some all-electric (EV) or plug-in hybrid (PHEV) vehicles are eligible for federal tax credits of up to $7,500.

Since 2010, US vehicle shoppers have had access to federal tax credits ranging from $2,500 to $7,500, depending on the size of an eligible vehicle’s electric battery. Both the

Toyota Prius Prime

and the

Toyota RAV4 Prime

were eligible for federal tax credits until the Inflation Reduction Act restricted federal tax credit eligibility to vehicles with final assembly done in North America.

As a hybrid vehicle, the Toyota Sienna was never eligible for federal tax credits—but should you still buy one? If you’re looking for a minivan with SUV-like flair, the Sienna could be the right kid hauler for you. Of course, we’ll go over some other minivan options so you can make an informed purchase.

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Is the 2022 Toyota Sienna eligible for federal tax credit?

Nope—the 2022 Toyota Sienna is not eligible for federal tax credits under the new Inflation Reduction Act of August 2022. And as a mere hybrid vehicle that still relies on a combustion engine, it’s never been eligible.

Federal tax credits for electric vehicles and PHEVs began in 2010, offering up to $7,500 for new electric vehicle purchases. A 200,000 vehicle cap was set for each carmaker at which point its electric vehicles would be ineligible for tax credits.

Tesla

and

General Motors

were the first carmakers to pass this milestone, with

Toyota

following in June 2022.

With the passage of the Inflation Reduction Act in August 2022, the eligibility criteria have narrowed even more—only vehicles with final assembly in North America are now eligible for federal tax credits.

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

Federal EV tax credit eligibility requirements have tightened—even for EVs assembled in North America.

The first thing to know about is the income requirements. If you’re buying a car yourself, you can make no more than $150,000 to qualify for a tax credit. Buyers that file taxes jointly with a spouse can earn no more than $300,000 combined to qualify for federal tax credits.

As of January 1, 2023, pricing stipulations came into effect. Only sedans priced at $55,000 or less can qualify for tax credits. Trucks, SUVs, and vans must be priced at $80,000 or less to qualify for federal tax credits. A price cap of $25,000 for used vehicles is also in effect.

These stipulations aside, battery construction is the biggest challenge facing carmakers. Under the new rules, EV batteries must contain a specified amount of North American-made materials or materials from a US free trade partner. The manufacture and assembly of the vehicle must also be done in North America to qualify. As of now, no vehicle meets these requirements—this means it will be very difficult to get a federal tax credit in 2023.

Even with these stringent requirements, more automakers are edging closer to the 200,000 vehicles-sold tax credit cap. As mentioned, Toyota recently passed this mark, and both

Ford

and

Nissan

are very close to surpassing it, likely doing so by early 2023.

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Other electric vehicle incentives

While it is becoming exceedingly difficult to qualify for EV federal tax credits, you might qualify for state or local tax credits if you purchase an electric or plug-in electric vehicle. Incentives such as state rebates and local tax credits can even help you install an upgraded power charger for your new EV or PHEV.

You’ll need to look into what tax credits are available where you live. For instance,

California offers several electric vehicle incentives

, including rebates worth up to $7,000.

Florida also offers electric vehicle incentives

, but those are limited to local power authorities. For example, the Kissimmee Utility Authority offers a $100 rebate on electric vehicle purchases, while the Jacksonville Electric Authority offers its customers tax credits of up to $7,500.

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Is the 2022 Toyota Sienna still worth buying?

So, even though the Toyota Sienna has never been eligible for a federal tax credit, is it still worth buying? It likely is.

With a starting price of $35,285, the 2022 Sienna is an affordable minivan that offers plenty. Even without federal tax credit eligibility, the 2022 Toyota Sienna is a highly ranked minivan, scoring identical 8/10 grades from both Car & Driver Magazine and Edmunds. And as a hybrid vehicle, your fuel costs will be reduced significantly.

One of the main reasons the Sienna scores so well is its excellent fuel efficiency, with ratings of 35 mpg city, 36 mpg highway, and 35 mpg combined. The 2022 Sienna boasts a 2.5-liter four-cylinder engine paired with two electric motors, making 245 horsepower combined with standard front-wheel drive. All-wheel drive is also available and brings a third electric motor to the Sienna’s setup while boosting its power to 260 horsepower.

Another selling point is the Sienna’s eye-catching looks. Minivans usually don’t send style gurus into paroxysms of ecstasy, but the Sienna has a decidedly-SUV look, with muscular exterior looks along with a modern and sleek interior.

That said, the Sienna isn’t a fleet of foot, as its acceleration lags behind competitors such as the

Honda Odyssey

. Its interior isn’t as configurable as, say, the rival

Kia Carnival

Bottom line: the Toyota Sienna is still worth buying, even if you can’t get a tax credit on the purchase. If you’re looking for a minivan that is eligible for a federal tax credit, a better driving experience, or a more sedate ride to better blend into the carpool crowd, there are other options (but not many of them).

What to buy instead of a Toyota Sienna

So the Toyota Sienna doesn’t float your boat? There’s only one other electrified minivan on the market, and guess what: It’s eligible for a federal tax credit.

Here are some comparable alternatives to the 2022 Toyota Sienna Hybrid:

If you really want the federal tax credit: 2023 Chrysler Pacifica PHEV

Starting price: $37,000

Possible tax credit: $7,500

The 2023

Chrysler Pacifica

PHEV is the only minivan eligible for federal tax credits. This roomy minivan scores a combined fuel mileage rating of 30 MPGe, and also offers 32 miles of all-electric driving range. The Pacifica is great for hauling a gaggle of kids or transporting cargo from A to B, but unfortunately Chrysler’s Stow N’ Go seats are not available on the PHEV Pacifica.

The Pacifica is teeming with tech features, including an Amazon Fire TV rear entertainment system, along with driver-assist and collision avoidance systems.

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If you want the best value for a minivan: 2023 Kia Carnival

Starting price: $32,900

Possible tax credit: N/A

As a gasoline-powered minivan, the 2023 Kia Carnival is not eligible for federal EV tax credits. That said, it’s a compelling minivan choice and offers buyers plenty of bang for their buck. The Carnival is powered by a V6 engine and front-wheel drive, and it scores average fuel economy ratings—19 mpg city, 26 mpg highway, and 22 mpg combined.

The Carnival boasts a spacious and comfortable cabin, with three rows along with fully-reclinable second-row lounge seats, allowing you to truly make the Carnival a party (or just get some sleep).

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If you want power, minivan-style: 2023 Honda Odyssey

Starting price: $37,340

Possible tax credit: N/A

Sure, the 2023 Honda Odyssey doesn’t have the Sienna’s style, the Pacifica’s electric driving ability, or the Carnival’s circus-like interior, but it does offer a better driving experience than the other minivans. Its strong V6 engine and solid handling make this minivan fun to drive. Sure, its gas mileage ratings are only average (22 mpg combined), but the Odyssey has other bells and whistles to distract from its middling fuel efficiency.

Its interior is comfortable and configurable, with movable second-row seats, plenty of tech and safety features, as well as an interior camera system to ensure things don’t get too Carnival-esque in the backseat. The Odyssey also comes with an option for a rear seat vacuum cleaner to hoover up all those Cheerios that will inevitably get tossed around on your carpool duty shifts.

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The bottom line:

Sadly, the 2022 Toyota Sienna isn’t eligible for a federal tax credit, but that doesn’t mean you shouldn’t look into this hybrid minivan for an economical way to get the family around. If you insist on taking advantage of the federal tax credit, you’ll have to take a look at the 2023 Chrysler Pacifica, the only minivan eligible for the tax credit.