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EV tax credit could become ‘refundable,’ putting cash in EV buyers’ pockets

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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.

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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.

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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.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Ron DeSantis calls out media bias in Tesla crash coverage

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Credit: ABC News

Florida Governor Ron DeSantis has sharply criticized legacy media outlets for what he describes as selective and biased reporting on vehicle accidents involving Tesla. In a recent X post, DeSantis questioned why headlines routinely spotlight the Tesla brand in crash stories, even when human error is the clear cause, while similar incidents with other automakers often receive generic treatment.

A prime example is the June 19, 2026, fatal crash in Katy, Texas. A Tesla Model 3 driven by Michael Butler struck a brick home at high speed, killing 76-year-old Martha Avila inside. Initial reports and headlines prominently featured “Tesla crash” and referenced the driver’s claim that an automated driving-assistance system was engaged.

Many outlets quickly speculated that Full Self-Driving or Autopilot were the cause of the crash, immediately blaming the suites for the accident shortly after it happened.

However, Tesla responded shortly after the accident with vehicle data that showed Butler manually overrode the system by pressing the accelerator to 100 percent, reaching 73 MPH in a residential area, more than double the speed limit. The accelerator remained floored after impact.

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Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

The National Transportation Safety Board (NTSB) later confirmed these findings, and Butler now faces manslaughter charges. His phone searches also included queries like “Tesla FSD too timid,” suggesting he may have intervened aggressively. Despite this, many headlines continued to center Tesla’s technology rather than the driver’s actions.

DeSantis highlighted a Washington Post headline, which was labeled, “Newly released photo shows wreckage of Tesla crash that killed grandmother.”

The subheadline noted the driver overrode assistance and floored the accelerator, yet the brand name dominated the framing. He asked whether legacy outlets typically name the make of a car in routine crashes or reserve that treatment for Tesla to push a narrative.

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This pattern appears widespread. Crashes involving Ford, Chevrolet, or Toyota vehicles frequently appear as “pickup truck slams into home” or “fatal car crash kills pedestrian” without brand specifics, especially absent new technology angles.

High-profile Ford F-150 or Chevy Silverado incidents tied to large sales volumes often escape brand-callout scrutiny. In contrast, Tesla stories consistently lead with the manufacturer, amplifying perceptions of risk despite data showing strong overall safety performance:

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Tesla’s own 2025 Impact Report indicates vehicles using FSD logged 0.19 major incidents per million miles, roughly eight times fewer than the U.S. average. Models like the Model Y also rank among the safest in IIHS and NHTSA testing for occupant protection. Critics argue disproportionate coverage ignores these statistics and driver behavior factors, such as younger or more aggressive Tesla owners in some studies.

DeSantis frames this as part of a broader political agenda against innovative American companies like Tesla. By consistently naming Tesla while downplaying others, media outlets risk eroding public trust and shaping perceptions detached from the evidence of human error in most cases.

As autonomous technology evolves across the industry, consistent and factual reporting will be essential to separate real safety concerns from narrative-driven coverage.

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Tesla enters two new markets on two different continents in one week

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Tesla entered two new markets this week by advancing its presence in Latvia (Europe) and officially launching operations in Uruguay (South America), marking a rapid dual-continent expansion.

These moves underscore the company’s strategy to tap into emerging EV markets with supportive policies, renewable energy grids, and growing demand for sustainable transport.

Latvia: Strengthening the Baltic Footprint

In Latvia, Tesla has built on its earlier registration of Tesla Latvia SIA in late 2025 with recent steps toward full operations, including job postings for a service center and representation in Riga. This aligns with broader Baltic expansion following Lithuania’s model of pop-up stores and service centers.

EV penetration in Latvia stands at around 7 percent for BEVs in new passenger car registrations. 2025 data showed 1,602 BEVs out of about 22,500 total, or 7.1 percent, with combined plug-ins nearing 19 percent. Growth has been steady but below the European average, supported by government subsidies and infrastructure development. Tesla models like the Model 3 lead local EV registrations.

Vehicles for the Latvian market will likely be sourced from Gigafactory Berlin or Gigafactory Shanghai. Charging infrastructure is robust for the region as well, with over 400- 2,000 public points, with Tesla Superchargers in Riga, Jūrmala, and along Via Baltica routes offering up to 250 kW.

Uruguay: Third South American Country

Tesla teased its Uruguay arrival with “Estamos llegando,” or, “We are arriving,” on social media, followed by an official presentation scheduled for mid-July.

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The company established Tesla Uruguay SAS, homologated Model 3 and Model Y (three versions each), and appointed local leadership. This makes Uruguay Tesla’s third official South American market after Chile and Colombia.

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Uruguay boasts one of Latin America’s highest EV penetrations, with battery-electric vehicles exceeding 20 percent market share recently, driven by tax incentives, high fuel prices, and a nearly 95-100 percent renewable electricity grid. Hundreds of Teslas already operate via grey imports, but official sales bring warranties, service, and support.

Vehicles will be imported from Gigafactory Shanghai, enabling competitive pricing for Model 3 and Model Y. Charging plans include Supercharger development alongside existing infrastructure, leveraging the country’s green energy advantage for affordable operation.

Tesla Superchargers follow Model 3 and Model Y to South American country

Tesla’s Dual Continent Expansion

Tesla’s simultaneous push into Latvia and Uruguay demonstrates efficient scaling: prioritizing service and infrastructure first, then direct sales in high-potential niches. In Europe, it fills Baltic gaps; in Latin America, it counters Chinese dominance while leveraging renewables.

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This dual move signals Tesla’s ambition to accelerate global EV adoption amid varying regional paces. By addressing local needs, like subsidies in Latvia or incentives and green grids in Uruguay, Tesla not only boosts volumes but advances its mission of sustainable energy.

For investors and consumers, it highlights resilience and opportunity in diverse markets, potentially paving the way for further growth in underserved regions. With strong fundamentals in both, these entries could yield long-term gains as EV transitions mature worldwide.

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SpaceX announces new Starship 13 test flight target date

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SpaceX Starship V3 flight 12
SpaceX Starship V3 flight 12 (Credit: SpaceX)

SpaceX has announced a new target date for the thirteenth test flight of Starship: Monday, July 20, with the launch window opening at 6:45 p.m ET/5:45 p.m. CT.

This is the first rescheduling attempt of Starship’s 13th test flight. It was set to launch last night, but SpaceX scrubbed the launch attempt.

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CEO Elon Musk revealed that some of the engines on Starship did not start, which automatically triggers a launch abort. Two of the Raptor engines will be removed and replaced.

SpaceX officially announced the new launch window this morning.

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Starship’s 13th test launch comes with a few new objectives, but SpaceX does not plan to attempt a catch of the booster, which it has done several times in the past.

For Starship’s Upper Stage, there are some adjustments to ensure engine reusability that will be assessed during the ascent, and 20 operational Starlink V3 satellites are also set to make their way into space. SpaceX also plans to attempt an in-space relight of a single Raptor engine, which is a critical demonstration for future orbital deorbit, refueling, and deep space maneuvers.

Ultimately, it will splash down in the Indian Ocean.

The continuous tests help SpaceX advance the Starship program toward eventual full reusability, operational Starlink V3 deployment, and future missions, which include NASA’s Artemis program.

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