Qualified Electric Vehicle

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Definition of 'Qualified Electric Vehicle'

A qualified electric vehicle (QEV) is a plug-in electric vehicle (PEV) that meets certain criteria established by the U.S. Internal Revenue Service (IRS). These criteria include a minimum battery capacity and a maximum fuel economy. QEVs are eligible for a number of tax incentives, including a federal income tax credit and a state sales tax exemption.

The federal income tax credit for QEVs is equal to 30% of the purchase price, up to a maximum of $7,500. The credit is gradually reduced for QEVs with a purchase price above $55,000. The credit is also reduced for QEVs that are leased.

The state sales tax exemption for QEVs varies from state to state. Some states offer a full exemption, while others offer a partial exemption.

In addition to the federal and state tax incentives, QEVs may also be eligible for other incentives, such as HOV lane access and free parking.

QEVs are becoming increasingly popular as consumers become more aware of the environmental and economic benefits of owning an electric vehicle. The federal government is also encouraging the adoption of QEVs by offering a number of tax incentives. As a result, the number of QEVs on the road is expected to grow in the coming years.

Here are some additional details about QEVs:

* QEVs are powered by electricity, which is stored in a battery pack.
* QEVs can be plugged into an outlet to recharge the battery.
* QEVs have a range of about 200 miles on a single charge.
* QEVs are more environmentally friendly than gasoline-powered vehicles.
* QEVs are also more fuel-efficient than gasoline-powered vehicles.

If you are considering purchasing an electric vehicle, a QEV may be a good option for you. QEVs offer a number of benefits, including tax incentives, HOV lane access, and free parking.

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