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EV buyers could receive a major refund.

The US House of Representatives passed a major $1.2 trillion infrastructure bill after months of debate over the weekend, which includes billions earmarked for electric vehicles and electric infrastructure. The bill passed in the Senate in August and now heads to President Biden to be signed into law. Some of those funds include $7.5 billion to build a nationwide EV charging network and to increase the speed of consumer EV adoption.

Of course, automakers will need to start building more affordable EVs first, aside from the aging Nissan Leaf and Chevrolet Bolt EV and EUV, the latter two are currently under recall due to a battery fire risk. Biden described the bill as "a once-in-a-lifetime bipartisan infrastructure bill that will create millions of jobs, turn the climate crisis into an opportunity, and put us on a path to win the economic competition for the 21st century."

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But House Democrats made a last-minute change to the bill, dubbed Build Back Better, which directly affects EV buyers' pockets. The currently unrefundable EV tax credit is being turned into a refundable one. That means buyers can get up to $12,500 back from the government, an increase from the current $7,500 tax credit applicable to certain makes and models. Think of it as more like an incentive instead of credit towards federal taxes.

The new refund breakdown is as follows for new vehicles built before 2027: the base refund amount is still $4,000, and another $3,500 will be tacked if the vehicle's battery has at least a 40-kWh capacity. For plug-in hybrids, the gas tank can't be more than 2.5 gallons. Now, here's where things get interesting, if not controversial.

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Buyers can qualify for another $4,500 if the automaker they chose builds EVs in America with unionized workers. There's an additional $500 on the table if the battery is also made in the US. Add it all up and you're at $12,500 in available tax credits. Ironically, the only vehicle on sale right now that qualifies for that maximum amount is the Bolt. What about the Ford Mustang Mach-E? It won't qualify for all of the credits because it's built in Mexico.

Another noteworthy change is that trucks, SUVs, and vans with an MSRP of up to $80,000 also qualify for the maximum credit amount. Originally, the cap was set at $74k for trucks, $69k for SUVs, and $64k for vans.

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