EV Detour? The Elimination of the Federal Tax Credit Slows US EV Sales
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Electric Vehicle Insights

EV Detour? The Elimination of the Federal Tax Credit Slows US EV Sales

11 February 2026 / Article

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The federal tax credit for certain battery electric vehicles and plug-in hybrid electric vehicles ended for vehicles acquired after September 30, 2025, eliminating an incentive effect in the market and for the US auto industry. This article assesses recent sales trends, the outlook for the US market in 2026, and what might be on the horizon in the medium term. 

The federal tax credit for certain battery electric vehicles and plug-in hybrid electric vehicles ended for vehicles acquired after September 30, 2025, eliminating an incentive effect in the market and for the US auto industry. This article assesses recent sales trends, the outlook for the US market in 2026, and what might be on the horizon in the medium term. 

Authors

Alexander Heil, PhD

Alexander Heil, PhD Alexander Heil, PhD

Senior Economist
The Conference Board

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Ioannis Siskos

Ioannis Siskos Ioannis Siskos

Senior Research Fellow, Governance & Sustainabilit…
The Conference Board

Read Bio

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