Yes, the Volvo XC90 Recharge Plug-In Hybrid qualifies for the federal tax credit of up to $7,500 in the U.S. This is due to its electric battery size and hybrid system, which meet the requirements under the Inflation Reduction Act for plug-in electric vehicles. Specifically, the 2023 model features an 18.8 kWh battery, which provides enough electric range to qualify for the full credit​.
Keep in mind, to qualify for the credit:
- Final assembly of the vehicle must occur in North America.
- Income limits apply: $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for other filers​.
You should also check with your dealership or a tax professional to confirm the details and ensure your specific vehicle qualifies.