Currently, 45X is available to facilities that build clean energy components and systems. To date, it has brought more than $200 billion in new investment to the U.S., driving job creation and supporting the development of battery manufacturing facilities, solar panel manufacturing, and more across the country.

Unfortunately, the proposed FEOC requirement would jeopardize this progress, leaving companies that are deemed “foreign-influenced entities”—or pass a certain threshold for overseas payments—ineligible for the credit. Given that many of these facilities source components, designs, and materials from overseas, these restrictions would essentially render the tax credit unusable.