Clean Energy Sector Awaits Guidance on New Foreign Entity of Concern Restrictions

Tax attorney Elizabeth Crouse was quoted in a Thomson Reuters article about how forthcoming foreign entity of concern (FEOC) rules for clean energy tax credits are likely to be sequenced. She explained that she expects the Trump Administration to prioritize the Section 45X Advanced Manufacturing Production Credit because "everything under 45X becomes more pertinent more quickly" and "material assistance" rules are driving the most immediate concerns for manufacturers. With guidance from the U.S. Department of the Treasury and the IRS still pending, Ms. Crouse noted that Section 45X can be addressed separately from Sections 48E and 45Y, which are less pressing given begin‑construction and safe harbor options and the later timing of major equipment procurement, likely closer to 2028.

"The material assistance rules are really the thing that's causing people to lose sleep in the 45X context," she said.

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