IRS Issues Guidance on Prohibited Foreign Entity Safe Harbors and Material Assistance Calculation for Clean Energy Tax Credits

On 12 February 2026, the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released Notice 2026-15 (the Notice), to provide interim guidance for determining whether a project has received material assistance from a prohibited foreign entity (PFE). The One Big Beautiful Bill Act (OBBBA) imposed new restrictions relating to PFEs in several clean energy tax provisions in the Internal Revenue Code. Among these changes, OBBBA disallowed credits under Section 45Y,... By: K&L Gates LLP