That depends on the type of hybrid and when it was purchased. Tax credits for electric vehicles and plug-in hybrid vehicles (such as a Toyota RAV4 Prime) were available for the EV tax credit for those vehicles that were purchased by September 30th, 2025. If the vehicle is a "standard" hybrid (meaning not a "plug-in hybrid"), there has never been a federal tax credit for those. Here is IRS information on the Clean Vehicle Credit.
Starting in 2025, there is a deduction available for car loan interest on new vehicles purchased in 2025 that were made in the USA. If your RAV4 was bought in 2025 and was assembled in America, the interest payments up to $10,000 on the loan for that vehicle can be deducted. A vehicle manufactured in the USA will have a VIN that begins with a 1, 4 or 5 - and the complete VIN will be needed to claim the deduction. The deduction of this interest is limited for incomes above $100,000 (or $200,000 for married couples filing jointly). More details on this deduction can be found at IRS Rules for Car Loan Interest Deduction.
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