📅 Deadline Alert: Public comments on IRS/Treasury Notice 2026-15 are due Monday, March 30, 2026. This matters for solar developers, manufacturers, tax equity investors, and foreign investors using E-2 or EB-5 structures that rely on solar tax credits for project economics.
The U.S. Treasury and the IRS released Notice 2026-15 on February 12, 2026, with interim “safe-harbor-style” guidance on prohibited foreign entity (PFE) restrictions. These restrictions are sometimes discussed as FEOC-style rules. They apply to key clean electricity credits that many immigration-linked businesses use in the U.S. market. This includes investors funding projects through U.S. entities and needing clean documentation for banks, tax equity, and regulators.
This article is current as of February 13, 2026, and discusses planning for tax year 2026 (returns filed in 2027).
Deadline summary table (what to calendar now)
| Tax / compliance event | Who it affects | Deadline | Extension available | What happens if you miss it |
|---|---|---|---|---|
| Submit comments on Notice 2026-15 (PFE/MACR interim guidance) | Developers, manufacturers, tax equity, investors, trade groups | March 30, 2026 | Not a formal “extension” process | You lose the chance to shape final rules; counterparties may impose stricter deal terms |
| Construction-start timing for wind/solar termination framework in OBBBA | Projects relying on 45Y/48E | Date shown in IRS guidance context | N/A | Missing the window can change credit availability and financing assumptions |
| Placed-in-service timing tied to OBBBA transition rules | Projects relying on 45Y/48E | Date shown in IRS guidance context | N/A | Potential loss or reduction of credit value if timing rules are not met |
The comment deadline is not a tax filing due date. It is still a hard stop for influencing how Treasury and the IRS finalize the rules.
1) What Notice 2026-15 does, and why it matters for clean energy deals
Notice 2026-15 is interim guidance for PFE restrictions that can limit eligibility for certain clean energy credits. It is designed to curb “excessive” involvement from prohibited foreign parties in the supply chain. It also tries to give the market a workable compliance path.
The centerpiece is the material assistance cost ratio (MACR). MACR is a cost-based test. It helps determine whether a facility, component, or property received too much “material assistance” connected to PFEs.
MACR has become a financing diligence item. Lenders and tax equity will want an audit-ready file. That file supports credit claims and reduces recapture or disallowance risk.
You can find international tax background and official updates on the IRS’s portal for international taxpayers and the general forms and publications page.
2) What PFEs are, and how they affect credit eligibility
Notice 2026-15 uses the Internal Revenue Code’s PFE framework (see IRC §§ 7701(a)(51) and (52)). It separates PFEs into two practical buckets:
- Specified foreign entities, such as entities incorporated or headquartered in certain covered countries.
- Foreign-influenced entities, typically based on ownership, control, or influence tests. The notice highlights a 25% ownership concept as a key trigger in common structures.
Why it matters: PFE status can flow into procurement, EPC contracting, and component sourcing. If a project’s listed components or supplier relationships fail the MACR/PFE constraints, the credit may be reduced or disallowed.
This is not only a developer problem. It touches:
- Manufacturers and contract manufacturers
- EPC contractors and procurement teams
- Tax equity investors and insurers
- Foreign investors in U.S. projects (including E-2 and EB-5 participants)
For investor-visa businesses, clean documentation is also a governance issue. If USCIS later requests evidence of lawful operations, organized tax records can help. Many immigration filings also use IRS proof like tax transcripts.
3) MACR thresholds and interim safe harbor mechanics (what to document)
MACR is calculated as a ratio of certain qualifying costs compared to a broader cost base. The notice provides a safe-harbor approach that often avoids deep upstream tracing.
Conceptually:
- The numerator focuses on costs tied to non-PFE sourcing, as defined for the listed items.
- The denominator reflects the relevant total cost pool for the tested property or component group.
A key compliance relief is scope. For listed components, taxpayers generally evaluate:
- Direct suppliers, or
- Their own production costs
Broader upstream tracing is generally not required under the interim approach, if you stay inside the safe harbor’s boundaries.
Contract manufacturing under Section 45X gets special attention. Direct material costs can include producer-paid costs. It can also include claimant-incurred costs in certain arrangements. This becomes a contract drafting issue, not just a tax issue.
Qualified interconnection property is tested separately. If it fails MACR, the interconnection property costs can be disallowed. The rest of the facility may still qualify. If the facility itself fails, the effect is broader.
⚠️ Warning: Expect tax equity and lenders to require supplier attestations, cost build-ups, and detailed reps. Missing documentation can delay funding or force indemnities.
Keep an “audit-ready” file that includes supplier certifications, bills of materials, invoices, and internal MACR workpapers. Preserve records for as long as the credit statute and audit windows can reach.
4) Credits and timelines affected under OBBBA and the interim guidance
Notice 2026-15 intersects with three major credit regimes:
- Section 45X (Advanced Manufacturing Production Credit)
- Section 45Y (Clean Electricity Production Credit)
- Section 48E (Clean Electricity Investment Credit)
The MACR/PFE rules can show up differently. For 45X, the focus is on components and production. For 45Y/48E, the focus is the facility and placed-in-service timing.
OBBBA also accelerates wind and solar termination concepts, tying credit availability to start-of-construction and placed-in-service timing. That timing risk feeds directly into procurement schedules and supplier contracting.
There is also an important exemption concept for certain projects that were safe-harbored before 2026. To rely on it, preserve start-of-construction proof. That includes contracts, invoices, and work logs.
Tax equity investors may apply interim guidance immediately. They often do this through conditions precedent, covenants, and insurance requirements.
5) How the market is reacting (what will change in deal terms)
Early reactions have been positive on practicality. Market participants point to clearer decision logic and examples for PFE determinations. Many also welcome limiting the analysis to direct suppliers and listed components.
Concerns remain. Retrofits and incremental facilities may be harder to support. Tax equity underwriting may become more conservative. Some participants are watching long error assessment windows, which can affect insurance pricing and availability.
The practical effect is deal friction. Expect more detailed diligence. Expect tighter procurement language.
6) Next steps: comments, proposed regulations, and what to do now
Treasury and the IRS have signaled intent to issue proposed regulations incorporating the interim approach. Comments due March 30, 2026 are the formal channel to influence that outcome.
Comments tend to carry weight when they are specific. Focus on:
- Edge cases in contract manufacturing arrangements
- Retrofit and repower fact patterns
- Documentation burden and supplier attestation feasibility
- Treatment of interconnection property in mixed projects
For companies with immigrant founders or foreign investors, align internal controls now. Update diligence checklists, procurement templates, and supplier onboarding packets. Keep clean records for financing, audits, and business compliance.
Action items to complete before March 30, 2026:
- Assign an owner for PFE/MACR compliance across procurement and tax.
- Collect supplier attestations and cost build-ups for listed components.
- Review contracts for 45X contract manufacturing cost responsibility.
- Draft and submit a focused comment letter if the rules affect your pipeline.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.
