Part of President Biden’s “Build Back Better” proposal includes increasing the EV tax credit from $7,500 to $12,500. The current program caps the $7,500 tax credit to 200,000 electric vehicles per manufacturer. The updated proposal is also looking at changing it from a tax credit to an incentive that can be utilized even if a tax payer does not have a tax burden, which is customarily how tax credits work. We focus on CPA tax advisory. The proposal would also life the cap on the 200,000 vehicle per manufacturer which puts early adopters of electric vehicles like Tesla and GM at a disadvantage.