Global Daily Tax News, US Issues Guidance For Energy Producers On Foreign Assistance, (Feb 17, 2026)

The US Treasury Department and the Internal Revenue Service have issued a notice providing guidance to support stakeholders to determine whether electricity-producing qualified facilities, energy storage technologies, or eligible components are receiving material assistance from a prohibited foreign entity (PFE) and would be ineligible for certain energy tax credits.

The One, Big, Beautiful Bill added new restrictions to clean electricity credits under Internal Revenue Code Sections 45Y and 48E, and the advanced manufacturing production credit under Section 45X to determine eligibility for credits when there is material assistance from a PFE.

Notice 2026-15 provides that the Treasury Department and the IRS intend to propose regulations with respect to the definition of a PFE and the calculation of the material assistance cost ratio that taxpayers must use to determine whether there was material assistance from a PFE. The notice also details how to use interim safe harbors authorized by the OBBB and provides example calculations under those safe harbors.

The notice also provides that the Treasury and the IRS intend to propose regulations and other further guidance with respect to the definition of a PFE and the material assistance rules, including new safe harbor tables as authorized in the OBBB.

The notice explains that a taxpayer may rely on the rules provided in the notice to calculate the material assistance cost ratio for:

any Section 45Y or 48E qualified facility or energy storage technology where construction begins after December 31, 2025, until 60 days after the publication of the forthcoming safe harbor tables;
any Section 45X eligible components sold in taxable years beginning after July 4, 2025, the date of the OBBB's enactment, until the date that the forthcoming safe harbor tables are published.

Finally, the notice requests comments 45 days from the date of publication regarding definitional, anti-circumvention, and other issues for future guidance.

Global Daily Tax News, US Issues Guidance For Energy Producers On Foreign Assistance, (Feb 17, 2026)

The notice explains that a taxpayer may rely on the rules provided in the notice to calculate the material assistance cost ratio for:

any Section 45Y or 48E qualified facility or energy storage technology where construction begins after December 31, 2025, until 60 days after the publication of the forthcoming safe harbor tables;
any Section 45X eligible components sold in taxable years beginning after July 4, 2025, the date of the OBBB's enactment, until the date that the forthcoming safe harbor tables are published.

Finally, the notice requests comments 45 days from the date of publication regarding definitional, anti-circumvention, and other issues for future guidance.