  This paper examines the effect of the federal EV income tax subsidy on EV
sales. I find that reduction of the federal subsidy caused sales to decline by
$43.2 \%$. To arrive at this result, I employ historical time series data from
the Department of Energy Alternative Fuels Data Center. Using the fact that the
subsidy is available only for firms with fewer than 200,000 cumulative EV
sales, I separate EV models into two groups. The treatment group consists of
models receiving the full subsidy, and the control group consists of models
receiving the reduced subsidy. This allows for a difference in differences
(DiD) model structure. To examine the robustness of the results, I conduct
regression analyses. Due to a relatively small sample size, the regression
coefficients lack statistical significance. Above all, my results suggest that
federal incentives designed to promote EV consumption are successful in their
objectives.
