Chrysler Pacifica Hybridmeets the qualifications laid out in the Inflation Reduction Act of 2022 and the qualifications put in place by the IRS, meaning this vehicle is eligible for a 2023 EV tax credit.
When President Biden signed the Inflation Reduction Act in August of 2022, things became a lot more difficult for electric and hybrid car buyers—and for EV manufacturers, too. The qualifications for an EV federal tax credit became a lot more strict, and most manufacturers don’t meet the requirements, even if they haven’t hit the 200,000 EV sales cap yet.
Fortunately, the Chrysler Pacifica Hybrid still qualifies for a federal tax credit for now. Still, understanding how the Inflation Reduction Act and the existing federal tax credit qualification requirements work together can be really helpful for electric car buyers.
Together, let’s take a look at the federal tax credit requirements, the Inflation Reduction Act, and alternative ways to get tax credits and other incentives for buying and owning an EV. Plus we can check out some alternatives to the Pacifica Hybrid, just in case.
Is the Chrysler Pacifica Hybrid still eligible for a federal tax credit?
The short answer: Yes!
While many hybrid and electric vehicles were disqualified from the federal tax credit program with the Inflation Reduction Act of 2022, the Chrysler Pacifica Hybrid is still eligible for a rebate of up to $7,500.
If you’re comparing the Pacifica with other major competitors, though, there are a few things about the federal electric vehicle incentive tax credit program that you should know. Back in 2010, the federal government introduced an EV tax credit for new electric vehicle purchases, with a cap for automakers who sold over 200,000 electric vehicles.
Teslaand General Motors (which includes
Cadillac) both quickly met that sales cap and, as a result, were disqualified from the federal tax credit program. Since 2010, other automakers have reached the 200,000 sale mark as well, and the number of vehicles available with a tax credit has begun to dwindle.
Additionally, in August of 2022, President Biden signed the Inflation Reduction Act, which limits federal EV tax credits to vehicles whose final assembly takes place in North America. This disqualified huge brands like
Toyotabut, since the Chrysler Pacifica Hybrid is assembled at the Windsor Assembly Plant in Windsor, Ontario, Canada, the Pacifica still qualifies for the tax credit.
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What you should know about the new federal EV tax credit requirements
The changes don’t end there, though. Even electric and hybrid vehicles assembled in North America have to meet some pretty strict requirements in order to qualify for the EV tax credit.
The most important factor for buyers is income requirements. Single EV buyers will only qualify for the tax credit if they make $150,000 per year or less, and joint EV buyers will only qualify if they collectively make $300,000 per year or less.
As of January 1st, there are also restrictions on vehicle prices:
- Sedans must be under $55,000
- Trucks, vans, and SUVs must be under $80,000
- Used vehicles must be $25,000 or less across the board
Fortunately, the Chrysler Pacifica Hybrid has a starting MSRP of $49,995, meaning this vehicle is well under the limit for hybrid vans.
For auto manufacturers, however, the biggest challenge is new battery construction requirements. In order to qualify for tax credits, EV batteries must contain a certain percentage of materials from either North America or a U.S. free-trade partner. These batteries must also be manufactured and assembled in North America. These are some extremely strict requirements, and vehicle manufacturers are scrambling in an attempt to meet them all.
Other electric vehicle incentives
Fortunately, electric vehicle incentives don’t stop at the federal level. Many states offer rebates and tax credits to EV drivers, and some even offer tax credits to help offset the cost of a home charger.
To see what kinds of programs are available to you, check out incentives in your state. It’s definitely worth it in some areas;
California’s electric vehicle incentivesinclude rebates up to $7,000!
In other areas, EV credits come from a different source.
Florida electric vehicle incentives, for example, are limited to regional power authorities. These credits range from a $100 rebate from the Kissimmee Utility Authority to tax credits up to $7,500 for Jacksonville Electric Authority customers.
In short, you never know what you’ll find in your area unless you take a look.
Is the Chrysler Pacifica Hybrid worth buying?
Now that you know that a Chrysler Pacifica Hybrid is eligible for federal tax credits, you may be wondering:
is it worth buying a Chrysler Pacifica Hybrid?
First, let’s talk about one of the most important factors in hybrid shopping: mileage. When operating as a conventional hybrid, the
Chrysler Pacifica Hybrid’s MPGis pretty average: 30 MPG combined. When using combined driving, though, this vehicle averages 82 MPGe, meaning you’ll be able to travel pretty far without filling up your tank.
Another advantage of this vehicle is the roomy interior. With a seating capacity of seven, this minivan can comfortably transport lots of passengers and lots of cargo at the same time—all while using minimal gasoline power.
Unfortunately, however, the Pacifica Hybrid does struggle in one area: reliability. With a score of 63 out of 100 from J.D. Power, the 2022 Pacifica is one of the least reliable hybrid vehicles on the market. Unfortunately, the 2023 model isn’t predicted to be much better, with an anticipatory score of just 67 out of 100. If you’re planning to take a long trip, drivers say the Pacifica Hybrid could leave you stranded.
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What to buy instead of a Chrysler Pacifica Hybrid
Even if you love the idea of federal tax credits, the Chrysler Pacifica Hybrid isn’t the only option on the market. If you want a car that saves on fuel and saves you money, there are a few different options at your disposal.
If you really want the federal tax credit: the 2022 Ford Escape PHEV
Starting price: $36,950
Possible tax credit: $7,500
The 2022 Ford Escape PHEV is still technically eligible for a federal tax credit and, while it’s no minivan, this crossover offers a lot of space for drivers who don’t want to compromise size for fuel efficiency. With an EPA-estimated driving range of 37 miles in all-electric drive mode, this hybrid vehicle gets about 40 miles per gallon combined. That means you’ll save a lot of money on fuel.
This vehicle is also said to be extremely reliable. The Ford Escape PHEV received a reliability score of 81 out of 100 from J.D. Power, meaning that it certainly beats out the Pacifica Hybrid for reliability.
The only real downside for most buyers is that the Escape PHEV lacks an all-wheel drive option, which some drivers really value.
If you really want a minivan: the 2022 Toyota Sienna
Starting price: $35,285
Toyota Siennadoesn’t meet the qualifications for the federal tax credit, the starting MSRP of this vehicle is almost $15,000 cheaper than the Chrysler Pacifica Hybrid, making it significantly cheaper even with a $7,500 tax credit.
This rugged vehicle seats up to eight people with a roomy interior and a powerful, capable hybrid powertrain. This vehicle is a great option for adventurers who like to head off the beaten path…with their family or seven of their closest friends in tow.
The downside is that this conventional hybrid offers 36 MPG combined, meaning your fuel savings aren’t quite as impressive as those of other hybrid vehicles. Still, the Sienna is a great option if you’re set on a minivan.
If you’re ready to go all-electric: the 2022 Hyundai Ioniq 5
Starting price: $41,245
Maximum range: 303 miles
Hyundai Ioniq5 isn’t the biggest electric SUV in the world, it certainly could save you some money. This vehicle has a starting MSRP that’s about $8,000 cheaper than the Pacifica Hybrid—and that’s not even counting the savings on fuel.
This electric vehicle can get up to 98 MPGe combined and has a full range of 303 miles, meaning you can travel far and wide without so much as a drop of gasoline. This vehicle also received a reliability score of 73 from J.D. Power, meaning you’ll be less likely to experience issues with the Ioniq 5 than with the Pacifica Hybrid.
The downside is that this vehicle has a seating capacity of five people, meaning it’s significantly smaller than the Pacifica. If you really want all seven of those seats, the Ioniq 5 isn’t for you.
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