Foreign Entity Rules Likely to Stifle Energy Tax Credit Claims

Developers face hurdles as a result of the new GOP tax-and-spending law’s strict rules against foreign influence in projects financed by clean-energy credits, reducing the attractiveness of the breaks.

The $3.4 trillion law, enacted earlier this month, largely hastened the phase outs or ended the clean energy tax credits in the Democrats’ 2022 climate law, which many Republicans and President Donald Trump for years have pledged to claw back. It also put new restrictions on the tax credits to prevent certain countries from benefiting from US tax breaks, limiting the use of components and contract payments with ties to ...