In a move to curb Chinese influence on the clean energy supply chain, the U.S. Department of the Treasury has issued interim guidance to enforce provisions under Section 45X of the Internal Revenue Code that restrict companies from claiming federal clean energy subsidies if they rely on foreign-made material. The notice describes guidance on restrictions on certain energy credits under the Internal Revenue Code with respect to status as, and sourcing from, a prohibited foreign entity (PFE). These restrictions were enacted by the One Big Beautiful Bill Act (OBBA).
