According to a recent LinkedIn post from Concentro, the Internal Revenue Service has issued Notice 2026-15 offering long-awaited guidance on Foreign Entity of Concern (FEOC) rules. The post highlights that while several key policy issues remain unresolved, the new direction on project-level material assistance is viewed as practical and largely in line with expectations.
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The post notes that domestic content safe harbor tables may now be used to calculate the material assistance cost ratio via a “Cost Percentage Safe Harbor,” with components not listed, such as steel and iron, excluded from the calculation. Concentro also points to a temporary certification reliance safe harbor, under which taxpayers can rely on certain supplier certifications, including partial certificates detailing PFE-exposed direct costs, provided they have no reason to doubt their accuracy.
According to the company’s commentary, important open questions persist, including the definition of PFE ownership and effective control, and how potential recapture rules will operate. The notice is also said to address tracking and averaging methods for allocating costs to projects, qualified interconnection equipment, and lookback periods, which could influence how clean energy and infrastructure investors structure transactions.
For investors, the post suggests incremental regulatory clarity that may reduce uncertainty around eligibility for tax incentives tied to domestic content and FEOC exposure. However, the remaining gaps on ownership thresholds and recapture mechanics indicate that regulatory risk has not been fully eliminated, and future guidance could still affect project economics, capital allocation decisions, and valuation assumptions across the energy transition value chain.