Developers Want Contract Clarity in IRS Energy Tax Credit Notice

Tax attorney Elizabeth Crouse was mentioned in a Bloomberg Tax article examining new IRS guidance on the "material assistance" provision of prohibited foreign entity restrictions that can limit clean energy tax credits for projects with ties to nations such as China and Russia. Ms. Crouse noted that the notice provides helpful guidance for investors assessing supply chain compliance, including how taxpayers may use safe harbor tables, perform supply chain tracing and rely on supplier certifications. She also observed that important questions remain, including what qualifies as a prohibited foreign entity/foreign entity of concern (FEOC) and how the rules could affect contracting and financing terms. The article added that the U.S. Department of the Treasury and IRS plan to issue more comprehensive guidance.

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