Policy Impact Considerations for Foreign Entity of Concern (FEOC) Guidance

The Clean Air Task Force (CATF) argues that for FEOC restrictions to achieve their goal of promoting U.S. competitiveness, the U.S. Department of Treasury must provide clear definitions and reporting frameworks. CATF recommends a narrow definition of "effective control" to protect licensing agreements, a clear reporting framework for supplier certifications, the adoption of a "substantial transformation rule" to prevent subcomponents from disqualifying a final product, and limited lookback periods for credit recapture to reduce risk for developers.

• The U.S. Department of Treasury needs to provide clear guidance on FEOC restrictions for tax credits—including the Investment and Production Tax Credits (45Y and 48E) and the advanced manufacturing credit (45X)—to prevent the unintentional limitation of U.S. energy developers' ability to compete.
• CATF recommends that the Treasury define "effective control" narrowly to ensure that license agreements between U.S. firms and FEOCs (such as Chinese firms) do not automatically trigger restrictions unless they genuinely compromise security objectives.

APA

Volk, N. (2025). Policy Impact Considerations for Foreign Entity of Concern (FEOC) Guidance. Clean Air Task Force. https://www.catf.us/2025/09/considerations-for-foreign-entity-of-concern-feoc-guidance/

Chicago

Volk, Natalie. Policy Impact Considerations for Foreign Entity of Concern (FEOC) Guidance. Clean Air Task Force, 2025. https://www.catf.us/2025/09/considerations-for-foreign-entity-of-concern-feoc-guidance/.

Wikipedia

{{cite press release |last1=Volk |first1=Natalie |title=Policy Impact Considerations for Foreign Entity of Concern (FEOC) Guidance |publisher=Clean Air Task Force |date=25 September 2025 |url=https://www.catf.us/2025/09/considerations-for-foreign-entity-of-concern-feoc-guidance/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{volk2025policy, author = {Volk, Natalie}, title = {{Policy Impact Considerations for Foreign Entity of Concern (FEOC) Guidance}}, publisher = {Clean Air Task Force}, year = {2025}, month = sep, url = {https://www.catf.us/2025/09/considerations-for-foreign-entity-of-concern-feoc-guidance/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }