Does the Volvo XC60 qualify for the car loan interest deduction?

The 2025–2028 deduction turns on where a vehicle is finally assembled — not the badge. Here's where the 2025–2026 Volvo XC60 is built and what it means for your loan interest.

Assembly data: NHTSA vPIC + our verified plant lists · Not tax advice · Methodology

DEPENDS — assembly varies by VIN

The Volvo XC60 may qualify, depending on your VIN. Assembly is one of four gates — you also need a new vehicle, personal use, a 2025–2028 loan, and income under the phase-out.

The short answer

The XC60 is Volvo's best seller and it is mid-move. Historically a Swedish-built import from Torslanda, it is scheduled to start South Carolina production in late 2026 in mild-hybrid and plug-in form. Until that transition is complete, the VIN is the only reliable way to know whether a given XC60 passes the OBBBA assembly test.

Where the Volvo XC60 is assembled

Assembly plant	Location	Assembly test
Volvo Cars Charleston	Ridgeville, SC	✓ United States

⚠️ The XC60 has been built at Torslanda in Sweden, and Volvo has announced that US XC60 assembly begins at its Ridgeville, South Carolina plant in late 2026. That means Swedish-built and South Carolina-built XC60s can overlap on dealer lots during the changeover, so only a VIN that decodes to the US plant clears the assembly test.

Confirm the other three tests

A US-assembly result is only the first gate. Each remaining condition has its own guide:

New & personal-use — used cars and leases don't qualify→ Loan dated 2025–2028 — refinancing keeps eligibility→ Income under the phase-out — run the MAGI calculator→

Check your exact VIN → Estimate your deduction

Frequently asked questions

Is the Volvo XC60 made in the USA?

Some will be. The XC60 has been imported from Torslanda, Sweden, and Volvo has said US production starts at its Ridgeville, South Carolina plant in late 2026. Decode the VIN to see which built yours.

How do I check my XC60's assembly country?

Look at the first VIN character: a 1, 4 or 5 means US assembly and passes the test, while a Y indicates Sweden and fails it. Our VIN checker reads it for you.

Does the XC60 plug-in hybrid qualify?

It depends on the same thing — the plant, not the powertrain. Volvo plans both mild-hybrid and plug-in XC60s in South Carolina, so decode the specific VIN before relying on the deduction.

Related vehicles

Volvo EX90 ✓ Qualifies Volvo XC90 ✕ Doesn't qualify Honda CR-V ! Depends on VIN Toyota RAV4 ! Depends on VIN Toyota Highlander ✓ Qualifies Toyota 4Runner ✕ Doesn't qualify

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