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ARTICLE · 24 FEBRUARY 2026

IRS Releases Guidance Regarding "Material Assistance" Rules

Foley & Lardner LLP
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Late last week, the Treasury Department and the Internal Revenue Service issued IRS Notice 2026-15, available here, which provides guidance regarding the "material assistance" prong of the new prohibited foreign entity requirements (also referred to as foreign entity of concern or "FEOC" requirements) under Sections 45X, 45Y and 48E of the Code.

United StatesEnergy and Natural Resources
Tori Roessler
Tori Roessler
Adam Schurle
Adam Schurle
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Late last week, the Treasury Department and the Internal Revenue Service issued IRS Notice 2026-15, available here, which provides guidance regarding the "material assistance" prong of the new prohibited foreign entity requirements (also referred to as foreign entity of concern or "FEOC" requirements) under Sections 45X, 45Y and 48E of the Code. While the rules applicable to the production of eligible components and applicable minerals under Section 45X of the Code are similar to the rules applicable to qualified facilities, qualified interconnection property and energy storage technology ("EST") under Sections 45Y and 48E of the Code, as applicable, our analysis regarding the application of IRS Notice 2026-15 to Section 45X of the Code will be included in a separate blog post.

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