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With the passage of the One Big Beautiful Bill Act (OBBBA), Treasury was tasked with the important responsibility of implementing the revised energy tax provisions included in OBBBA, guided by the President’s direction in Executive Order (EO) 14315, Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources. In response, Treasury issued Notice 2026-15, which provided guidance for determining whether electricity-producing qualified facilities, energy storage technologies, or eligible components are receiving material assistance from a prohibited foreign entity (PFE) and would be ineligible for certain energy tax credits.
The Solar Energy Manufacturers for America (SEMA) Coalition supports President Trump’s objective of ensuring American energy dominance, including by increasing domestic energy production and ushering in a golden age of American manufacturing of energy-related products and components. This is particularly critical for maximizing economic growth and competing with China. At a time of growing domestic energy demand, the United States needs all the energy it can get, and to make as much of it here at home as possible.
The SEMA Coalition greatly appreciates Treasury's issuance of Notice 2026-15, which provides interim guidance on the material assistance provisions. While this interim guidance was very helpful, questions remain regarding implementation, scope, and compliance pathways for domestic solar manufacturers and project developers. Greater clarity will be critical to ensure the rules effectively prevent taxpayer funds from going to PFEs while also providing workable and predictable standards that support continued investment in U.S. manufacturing and energy infrastructure. The SEMA Coalition offers the following recommendations and requests for clarification to help ensure the final guidance strengthens domestic supply chains, supports American manufacturing, and enables the U.S. to meet growing electricity demand with advanced energy technologies built here at home:
