On Feb. 12, the Treasury Department and Internal Revenue Service (IRS) released their long-awaited interim guidance on prohibited foreign entities (PFEs) and safe harbors.
This brief explainer breaks down the new PFE guidance and what it means for eligibility under 45Y, 48E, and 45X. Click here to understand how the material assistance cost ratio (MACR), the PFE test, and supplier certifications fit together — and what actions may be required.