The Inflation Reduction Act, which President Joe Biden signed into law Tuesday, says that if automakers want their electric vehicles to be eligible for tax credits, they'll need to have final assembly in North America. The law, which takes effect immediately, ends credits for about 70% of the 72 models that were previously eligible, according to the Alliance for Automotive Innovation.

About 20 model year 2022 and early model year 2023 vehicles will still make the cut for EV tax credits of up to $7,500 through the end of the year under the new legislation. Any manufacturer that has vehicles assembled in North America and has reached their cap of 200,000 EV credits will not be eligible for the freshly named Clean Vehicle Credit this year. That leaves the following models still eligible:

Electric vehicles from model year 2022 eligible for Clean Vehicle Credit

• Audi Q5

• BMW 3-series Plug-In and BMW X5

• Chrysler Pacifica PHEV

• Ford F Series; Ford Mustang Mach E; Ford Transit Van

• Jeep Grand Cherokee PHEV

• Jeep Wrangler PHEV

• Lincoln Aviator PHEV and Lincoln Corsair Plug-in

• Lucid Air

• Nissan Leaf

• Rivian EDV; Rivian R1S; Rivian R1T

• Volvo S60

Electric vehicles from model year 2023 eligible for Clean Vehicle Credit

• BMW 3-series Plug-In

• Mercedes EQS

• Nissan Leaf

EVs that have used up their tax credits

• 2022 Chevrolet Bolt EUV; 2022 Chevrolet Bolt EV; 2023 Bolt EV

• 2022 GMC Hummer Pickup and SUV

• 2022 Tesla Models 3, S, X and Y

• 2023 Cadillac Lyriq

More details

The law's signing means that EVs sold by Toyota, Hyundai, Porsche, Kia and others will no longer be eligible for the tax credit. However, if a customer has made a non-refundable deposit or down payment of 5% of the total contact price before Biden signed the law, they can still qualify. Many automakers had been urging customers to finalize deals and put down deposits in order squeeze in a few more tax credits.

Additional provisions are expected to go into effect January 1, 2023. For example, there will be new restrictions on battery and mineral sourcing, as well as price and income caps. The start of the year will also reset the clock for General Motors and Tesla to be eligible once again for EV tax credits.