Foreign Entity of Concern (FEOC)

Empact leverages our NexusIQ™ platform and expert team to provide comprehensive coverage of new supply chain and ownership requirements affecting clean energy projects

New requirements in the One Big Beautiful Bill (OBBB) affect clean energy projects

The OBBB places new requirements on projects beginning construction in 2026 or later

'Material assistance': the value of manufactured products or components from entities with ties to certain countries must not exceed certain thresholds (which vary based on the technology and year a project begins construction)

'Taxpayer': neither the entity selling tax credits (e.g., project developer nor owner) nor the entity buying the tax credits must not be in one of several categories, such as being subject to Uyghur Forced Labor Prevention Act restrictions. In addition, the buyer or seller must not be under control of entities that are themselves in these categories

Penalties for noncompliance can be more severe than under the Inflation Reduction Act (IRA)

For example, investment tax credits (ITCs) can be fully recaptured within 10 years if a payment to a prohibited entity occurs that gives that entity effective control over the project or owner

How Empact helps with FEOC compliance

Empact leverages its expertise and NexusIQ™ platform to streamline FEOC compliance for clean energy developers, contractors, investors, and other stakeholders

Gather / organize documents

Empact’s NexusIQ™ platform enables developers, suppliers, and contractors to upload, organize, and share documents with key stakeholders, such as counsel or tax equity

Review documentation and identify issues

Empact’s compliance team can review data and documentation to identify potential issues and work with outside counsel on a formal opinion

Provide guidance and certification

Empact can work with developers to establish project-specific compliance requirements and procedures, and provide certification of meeting these requirements

Empact is ready to help

Anticipating FEOC affecting projects starting construction in 2026, Empact quickly rolled out FEOC compliance offerings. Let’s explore how we can support your projects