According to a recent LinkedIn post from Concentro, new IRS Notice 2026-15 provides long-awaited guidance on Foreign Entity of Concern (FEOC) rules, with particular focus on project-level material assistance. The post indicates that while several key policy questions remain unresolved, the practical elements of the notice appear workable and largely in line with expectations.
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The company’s LinkedIn post highlights that domestic content safe harbor tables can now be used to calculate the material assistance cost ratio via a “Cost Percentage Safe Harbor,” excluding non-listed components such as steel and iron from the calculation. It also notes a temporary certification reliance safe harbor, under which taxpayers may rely on certain supplier certifications, including partial certificates specifying exposure to potential FEOC-linked costs.
According to the post, significant uncertainties persist around defining FEOC ownership and effective control, as well as around recapture rules and mechanisms, suggesting ongoing regulatory risk for affected projects. The notice nevertheless offers more detail on tracking and averaging methods for allocating costs to projects, qualified interconnection equipment, and relevant lookback periods, which could help investors and developers better model compliance costs and eligibility for tax incentives.
For investors, the post suggests incremental clarity that may reduce immediate compliance friction and financing uncertainty for U.S. clean energy and infrastructure projects that must navigate FEOC restrictions. However, the referenced gaps in guidance imply that transaction structuring, supply chain due diligence, and long-term tax risk assessments will remain important factors affecting project economics and valuations in this sector.