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. Motor Vehicle Sales

    The number of domestically produced units of cars, SUVs, mini-vans ...
  3. Deduction

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

    An amount of money that a taxpayer is able to subtract from the ...
  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 Articles
  1. Getting A Job As The Tax Man
    Insurance

    Getting A Job As The Tax Man

  2. Get A Tax Credit For Your Foreign Investments
    Taxes

    Get A Tax Credit For Your Foreign Investments

  3. 5 Tax Credits You Shouldn't Miss
    Taxes

    5 Tax Credits You Shouldn't Miss

  4. Give Your Taxes Some Credit
    Taxes

    Give Your Taxes Some Credit

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center