Welcome to the Jungle: We Got FEOC (and Games)
Tax attorney Elizabeth Crouse wrote an article in Power Magazine on how the One Big Beautiful Bill Act's (OBBB) Foreign Entity of Concern (FEOC) rules are reshaping renewable energy supply chains and tax credit eligibility. She explains the core tests for Specified Foreign Entities (SFEs) and Foreign‑Influenced Entities (FIEs), "material assistance" limits that can disqualify projects or Section 45X manufacturing credits, and key gray areas pending U.S. Department of the Treasury and Internal Revenue Service (IRS) guidance (including "effective control," supply chain depth and what counts as "manufacturing"). Ms. Crouse offers practical steps for near‑term compliance: adopt conservative structures, avoid officer/director ties and conduit financings with SFEs, tighten supplier diligence and contracting, collect granular cost and serial‑tracking data and maintain rigorous records as customers and lenders increasingly require FEOC assurances ahead of 2026.