Yes, the Volvo XC60 Plug-in Hybrid (PHEV) qualifies for the federal tax credit of up to $7,500. This is due to its larger 18.8 kWh battery, which meets the capacity requirements for the full tax credit under the Inflation Reduction Act. However, to be eligible, the vehicle must also meet other criteria, such as having its final assembly in North America and staying below the MSRP limits set for SUVs (which is currently $80,000).
Be sure to confirm the vehicle’s final assembly location and pricing details when purchasing, as these factors impact eligibility.