U.S. President Joe Biden has signed legislation that sees elimination of electric vehicle tax credits for many models that are currently enjoying up to $7,500 in benefits.

The $437 billion Inflation Reduction Act alters existing federal incentives while introducing a new $4,000 used electric vehicle incentive for vehicles priced under $25,000. The Act also makes loans and tax breaks available to manufacturers in North America to switch production to EVS.

The White House said the bill restructures the existing $7,5000 new EV tax credit. The bill includes tens of billions of dollars in new loan, tax credit and grant programs for automakers to build cleaner vehicles.

The older cap on the number of vehicles each manufacturer could enjoy incentives has also been lifted.

Observers say that when the raw-material rules take effect in 2023, the number of currently qualifying vehicles would drop — to zero.

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