Although the auto industry and battery makers are racing to invest in a domestic supply chain, it will be years before those facilities are up and running. For now, the EV supply chain is mostly dominated by China — but any cars using Chinese-made battery components would be disqualified from tax credits under the new bill.

The bill tries to take that into account by phasing in the battery and minerals requirements over time, and the industry is getting lots of financial help to set up domestic production.

But certain provisions — like a new requirement that EVs must be assembled in North America to be eligible for the credits — will take effect immediately after the president signs the bill into law.

That will automatically slash the list of eligible vehicles from 72 to about 25, according to the Alliance for Automotive Innovation, an auto industry lobbying group. And when additional sourcing requirements go into effect in 2023, none of today’s EVs would qualify for the full credit, the group says.

Where it stands: EV buyers are currently eligible to receive a federal tax credit of up to $7,500, but the benefit is capped at 200,000 vehicles per manufacturer.