One of the most notable portions, for electric vehicle drivers at least, of President Joe Biden’s Build Back Better plan is the introduction of a massive $12,500 EV tax credit that will be offered to those who choose to drive sustainable cars. Now, new language revisions in the bill could see the EV tax credit turn into a “refundable credit,” which would give those who drive EVs an opportunity to receive a refund check that would put cash in their pockets.
Following Teslarati’s report on the EV Tax Credit portion of the Build Back Better plan over the weekend, the language in the proposal has been revised to reflect a refundable tax credit scenario for those who purchase EVs. Previously, the tax credit was used precisely as a “credit” would work. If a U.S. tax filer owed money on their taxes but bought an EV, the credit would eliminate the balance the filer owes on their taxes but would not put money in the filer’s pocket directly.
U.S. Senate Panel looks to boost EV Tax Credit to $12,500: What we know so far
Now, this may change, as the new language in the bill states that the credit would now be able to be obtained by the filer. The excess credit would then be converted into a check and sent to the filer, putting the amount in the EV driver’s pocket. Previously, if someone owed $2,500 in taxes and bought an EV that offered a $7,500 tax credit, it would eliminate the $2,500 balance, but the remaining funds would not be given to the driver. Instead, the additional funds would be returned to the government.
The new language would change the scenario completely. If someone owes $2,500 in taxes and bought an EV that offers a $7,500 tax credit, the $2,500 balance would be eliminated, and the remaining $5,000 would be sent to the driver in a check. CNET first reported the changes.
The advantages of an actual refundable credit could bring more effectiveness to the EV tax credit program altogether. Instead of people losing out on the remaining credit that is returned back to the government following their tax balance being eliminated, they will now be able to put the remaining funds back into their pocket, which could lead to several advantages for the car buyer. They could use the credit to install a home charger or put the entire balance toward their car loan.
Additionally, language would now give disqualified automakers, like Tesla and GM, who have sold 200,000 EVs and cannot offer the credit, the opportunity to provide the refundable tax credit for up to five years. After the first five years, the credit will only be available to use by EVs that are manufactured in the United States. Currently, the language regarding vehicle type price caps, which applies to SUVs, Trucks, and Vans up to $80,000 and “other,” which includes sedans, sits at $55,000 and under, still is present in the bill.
Income limits have been lowered to $500,000 for joint families, $375,000 for the head of household, and $250,000 for individual filers. These are relatively drastic reductions, especially as single filers were eligible with incomes of up to $400,000, and joint filers were not disqualified until the $800,000 yearly income mark.
Finally, used EVs will now qualify if the vehicle is at least two years old, costs under $25,000, and the household has an income of less than $75,000 for single filers and $150,000 for joint filers.
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News
Tesla Model Y L reportedly entered mass production in Giga Shanghai
The vehicle is expected to be a larger version of the best-selling Model Y crossover.
Reports from industry watchers in China have suggested that the Tesla Model Y L has started mass production at Gigafactory Shanghai. The vehicle is expected to be a larger version of the best-selling Model Y crossover, offering three rows and six seats thanks to a longer wheelbase.
Tesla Model Y L Production Rumors
Reports about the new Model Y variant’s alleged milestone were initially shared on Weibo, with some industry watchers stating that the vehicle has already started mass production. Tesla China is reportedly surveying which of its domestic stores would have the first display units of the six-seat Model Y.
The Model Y L’s steady march towards production was evident this past week, with recent reports indicating that the vehicle’s key specs have already been listed in the China Ministry of Industry and Information Technology’s (MIIT) latest batch of new energy vehicle models that are eligible for vehicle purchase tax exemptions.
As per the MIIT’s list, the Model Y L will be a dual motor vehicle that is equipped with an 82.0-kWh lithium-ion battery from LG Energy Solution. The vehicle will feature six seats with two captain seats on the second row, as well as a CLTC range of 751 km.
Tesla Model Y L Potential
The potential of the Model Y L is vast, considering that it is produced in the existing Model Y lines of Tesla’s factories. This should slash new vehicle tooling costs and potential ramp-up issues. Three-row SUVs also command a pretty notable market that has mostly only been accessed by the more expensive Model X. With the Model Y L’s lower price, Tesla could become more competitive in the three-row SUV segment.
As noted by longtime Tesla owner and investor @_SFTahoe, the Model Y L could also become a more premium option for the company’s Robotaxi business, thanks to its second row captain seats and spacious interior. The expansion of Model Y L Robotaxis should also be impressive considering Tesla’s mastery of mass manufacturing techniques.
News
Tesla Model 3 filings in China show interesting hardware addition
The addition of a front bumper camera to the Tesla Model 3 is a big upgrade from a hardware perspective.
Tesla Model 3 filings in China are showing the vehicle could get a very interesting hardware addition, one that was not included on the “Highland” update when it rolled out to customers a year and a half ago.
The Model 3 Highland is Tesla’s updated version of the all-electric sedan, and was launched across the world in early 2024. It featured a variety of updates, including new exterior and interior designs.
However, there were a few things missing from the update that surprised Tesla fans because they were included on other cars.
One of them was the lack of a front bumper camera, a hardware piece that was included on other vehicles within the company’s lineup, including the Model Y Juniper, an updated version of the all-electric crossover that launched earlier this year.
Now, it seems Tesla is preparing to implement that front camera on the Model 3, as new filings with China’s Ministry of Industry and Information Technology (MIIT) showed the car with the addition:
🔥🔥 Tesla will soon add a front bumper camera to the Model 3!
The images confirming this upgrade were leaked on the official website of China’s Ministry of Industry and Information Technology (MIIT).
H/t @kas12323 pic.twitter.com/ieRv9wiwOK
— The Tesla Newswire (@TeslaNewswire) August 8, 2025
The front bumper camera is a small but powerful addition to Tesla vehicles. It not only enhances visibility for simple tasks like parking, helping avoid things like curbs, but it also helps provide a wider field of view directly in front of the car.
It is also a crucial part of the Full Self-Driving and Autopilot suites, helping provide yet another angle of vision for the vehicle as Tesla makes its suite more robust. It is already improving through software upgrades and data collection, but it could always use additional hardware to enhance accuracy.
A Model 3 Highland test mule was spotted near Boston, Massachusetts, back in May with a variety of additional cameras equipped. Some believed this was a vehicle that was assisting with collecting training data.
Tesla is testing a Model 3 with some mysterious cameras in the U.S.
However, it could be a sign of Tesla planning to add this piece of hardware to a slightly updated version of the new Model 3 that could come to production in various markets in the near future.
Elon Musk
Tesla CEO Elon Musk details massive FSD update set for September release
“This will substantially reduce the need for driver attention, but some complex intersections, heavy weather or unusual events will still require attention.”
Tesla CEO Elon Musk detailed the changes that are expected to come with a massive Full Self-Driving (FSD) update, which is set to roll out sometime in September, he revealed earlier this week.
Tesla has been refining its FSD suite for years, but it has never been as good as it is now. The focus is to get the suite to a point where interventions are no longer needed and drivers simply become passengers, as they will not be responsible for paying attention to the road.
Elon Musk teases crazy new Tesla FSD model: here’s when it’s coming
That version of FSD will come eventually, but not next month. However, there are dramatic improvements that will come with next month’s FSD update that will roll out to the public, Musk said:
“The FSD software update next month will be a major step-change improvement for rare conditions.”
The FSD software update next month will be a major step-change improvement for rare conditions
— Elon Musk (@elonmusk) August 8, 2025
Additionally, he provided specific details on what would change, hinting that the need for a driver to pay attention will be “substantially reduced,” but there are some “complex intersections, heavy weather, or unusual events” that will still require drivers to assume responsibility for the car:
“This will substantially reduce the need for driver attention, but some complex intersections, heavy weather or unusual events will still require attention.”
This will substantially reduce the need for driver attention, but some complex intersections, heavy weather or unusual events will still require attention.
Note, the Austin robotaxi FSD build is ~6 months more advanced than what is available in cars in America and there are…
— Elon Musk (@elonmusk) August 8, 2025
We have been teased about these types of updates before, but usually they involve some kind of mention of FSD being ready for unsupervised driving “by the end of the year.” Musk did not mention that here.
There is also the fact that Tesla has another FSD build in Austin for the Robotaxi suite that is more advanced than what is available to the public. It has performed well, Musk says, making claims that there are times when it feels “eerily human.”
Tesla Q2 2025 vehicle safety report proves FSD makes driving almost 10X safer
The improvements in FSD capabilities in subsequent releases are usually very evident. As Tesla continues to refine the suite for the public, it gains more confidence and becomes smarter through the collection of data and the use of neural networks.
The only thing left to wait for is the release itself, and we are hopeful it will roll out to the public in September, as Musk says.
Tesla Model Y L reportedly entered mass production in Giga Shanghai
Tesla Model 3 filings in China show interesting hardware addition
Tesla CEO Elon Musk details massive FSD update set for September release
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