The Trump administration issued a long-awaited notice Thursday aimed at clarifying complex restrictions for clean energy tax projects that include foreign components.
The provisions could expand the number of renewable energy projects that are prohibited from using tax credits and are already facing an accelerated phasedown in value under President Donald Trump.
Republicans’ One Big Beautiful Bill, H.R. 1 (119), imposed sweeping foreign entity of concern restrictions for surviving clean energy tax credits, which bar credits to companies with links to countries like China or Russia.
Democrats’ climate law, the Inflation Reduction Act, already included some of those so-called FEOC provisions, but Republicans’ bill expanded the restrictions. Those changes included disallowing prohibited foreign entities from accessing several tax credits, as well as restrictions on assistance from certain entities. The law applies to both entities linked to foreign adversaries and those with foreign ownership.
