Utility Dive•11 days ago
Treasury issues FEOC guidance, clarifies material assistance cost ratio
Key Takeaway
Treasury's new FEOC/MACR guidance provides critical clarity for developers and IPPs on supply chain eligibility, directly impacting project financing and tax credit access.
AI Summary
- •Treasury issued interim safe harbor guidance for calculating a project or component’s Material Assistance Cost Ratio (MACR).
- •The guidance clarifies relevant MACR thresholds, which are critical for determining eligibility for certain clean energy tax credits.
- •This regulatory update provides essential clarity for developers and IPPs on supply chain compliance and foreign entity of concern (FEOC) requirements.
- •Understanding these MACR rules is crucial for project financing, procurement strategies, and maximizing tax credit benefits.
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