Treasury Gives Guidance on New Energy Tax Credit Limits (1)

The Treasury Department and IRS Thursday released guidance on the new restrictions to the clean energy tax credits enacted by the GOP’s tax-and-spending package.

The guidance (Notice 2026-15) provides more details on the prohibited foreign entity rules, which require clean energy developers to limit contracts and supplies it receives from companies with ties to covered nations, such as China and Russia.

The interim guidance provides more details addressing the material assistance provision, which tax practitioners say is one of the more complex areas of the restrictions.

The material assistance provision requires companies to ensure they aren’t receiving a ...