Americas Clean Energy: FEOC Update from Treasury and IRS

Goldman Sachs analyzes Notice 2026-15 from the US Treasury, which provides interim rules for clean energy tax credit eligibility regarding components sourced from Prohibited Foreign Entities (PFE). While final rules are delayed, the update establishes the Material Assistance Cost Ratio (MACR) framework for credits like 45X and 48E.

Key Takeaways

• 1.The Department of Treasury and IRS issued Notice 2026-15, providing interim guidance on Prohibited Foreign Entities (PFE) for clean energy tax credits.
• 2.Eligibility for 45X, 45Y, and 48E credits will be determined by a Material Assistance Cost Ratio (MACR) framework.
• 3.The guidance established safe harbors for projects commencing production after 2025, allowing the use of specific cost tables or supplier certifications.

Table of Contents

• Overview
• Interim safe harbor guidance amid forthcoming tables
• PFE definition
• Material assistance cost ratio (MACR)
• Next steps
• Implications

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