The U.S. House of Representatives passed Biden's $190 million "Rebuild Better" bill

After months of negotiations and stalled voting, the U.S. House of Representatives on Friday passed President Joe Biden's $1.9 trillion "Build Back Better" bill by a final vote of 220-213. The legislation includes a massive overhaul of the federal electric vehicle tax incentive system, which would have the potential to offer buyers a $12,500 tax refund.

The vote came a week after Parliament passed the president's bipartisan infrastructure plan, which includes a rule to vote this week on the Rebuild Better bill.

While the bill's passage is an important step on the president's agenda, the legislation faces additional challenges in the Senate. The bill requires every Democratic senator to vote in favor, but there are still two senators — Senators Joe Manchin and Kyrsten Sinema — who oppose it. If the two senators give final approval, Vice President Kamala Harris could cast a vote to break the deadlock and move the legislation to Biden's desk for signature.

The Rebuild Better Act is a huge deal for the auto industry. The agenda includes a huge overhaul of the tax credit system for electric vehicles. Currently, the system's credit is $7,500, non-refundable, and cash has never been put back in the pockets of electric vehicle buyers. However, the house-approved version of the bill changed it to a refundable credit. The proposed changes include a preferential offer of up to $12,500 for electric vehicle buyers at the time of tax refunds. If electric cars were made in the U.S. with union labor, the basic $7,500 discount could be increased by $4,500, and if it were a U.S.-made battery, it could add another $500.