Qualified Electric Vehicle

AAA

DEFINITION of 'Qualified Electric Vehicle'

An electric vehicle that qualifies the owner to claim a nonrefundable tax credit. A qualified electric vehicle must have at least four wheels and be designed for public use. It must also be powered primarily by an electric motor drawing its charge from rechargable batteries or fuel cells. The vehicle must be driven almost exclusively in the U.S.

INVESTOPEDIA EXPLAINS 'Qualified Electric Vehicle'

In order to claim the qualified electric vehicle credit, the taxpayer must have purchased the vehicle new and for personal or business use. The vehicle cannot be purchased for resale, and it cannot have been used as a nonelectric vehicle at any time. The credit is claimed on IRS Form 8834.

RELATED TERMS
  1. Alternative Motor Vehicle Credit

    A tax credit given to individuals who purchase vehicles that ...
  2. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  3. Tax Credit

    An amount of money that a taxpayer is able to subtract from the ...
  4. Motor Vehicle Sales

    The number of domestically produced units of cars, SUVs, mini-vans ...
  5. Working Tax Credit (WTC)

    A tax credit offered to low-income individuals working in the ...
  6. Fast-Moving Consumer Goods (FMCG)

    These are consumer goods products that sell quickly at relatively ...
RELATED FAQS
  1. How important are seasonal trends in the automotive sector?

    The automotive industry has some definite seasonal trends, with peak demand occurring in the spring and fall, and lowest ... Read Full Answer >>
  2. How is the basket of goods selected for the Consumer Price Index?

    In the United States, the inflation level in the economy is approximated by the Bureau of Labor Statistics via a basket of ... Read Full Answer >>
  3. What is the automotive sector?

    In the world of finance, the automotive sector represents the financial performance and economic variables related to automobile ... Read Full Answer >>
  4. What other sectors are most highly correlated with the automotive sector?

    The automotive sector is a broad category correlated with a variety of related industries. Auto parts manufacturers and raw ... Read Full Answer >>
  5. How do you calculate the income effect distinctly from the price effect?

    Economists calculate the income effect separately from the price effect by keeping real income constant in the calculation. ... Read Full Answer >>
  6. How important are fleet sales to an automaker's business?

    Fleet sales have been turning much more profitable with the recovery of the auto industry since the financial crisis of 2 ... Read Full Answer >>
Related Articles
  1. Insurance

    Getting A Job As The Tax Man

    If you'd like the IRS to pay you some money for a change, consider a career working in taxes.
  2. Taxes

    Get A Tax Credit For Your Foreign Investments

    The foreign tax credit provides a break on investment income made and taxed in a foreign country.
  3. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  4. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  5. Savings

    How to Invest in Liquor (and Avoiding the Hiccups)

    Investing in liquor has been profitable for ages but there could be some hiccups along the way.
  6. Economics

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  7. Economics

    What are Consumer Packaged Goods?

    Consumer packaged goods, CPGs, are items that consumers use and purchase often.
  8. Mutual Funds & ETFs

    This ETF Can Weather Any Market Condition

    Looking for a winning ETF that's capable of performing in almost any environment?
  9. Home & Auto

    The Real Cost Of A Speeding Ticket

    Speeding can come at a cost that goes well beyond one driver and one ticket.
  10. Taxes

    The First Thing You Should Do With Your Tax Refund

    Nobody likes to pay taxes, but everyone loves to get a tax refund. When the check arrives in the mail, it's hard to resist spending it on some indulgence.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center