"Provisions that aim to prevent U.S. tax credits from going to China are written in a way that could shut off just about all clean energy credits."
"Ever since the first draft of the “One Big Beautiful Bill Act” appeared in the House, renewable energy trade groups have been trying to make sense of language intended to stop tax credits from going to a “prohibited foreign entity.”
The House version of the budget reconciliation measure could be read as saying that a renewable energy development, EV battery factory and many other projects are ineligible for tax credits if just one bolt comes from a Chinese company, or if any entity in a product’s supply chain has ties to China.
It’s understandable why this provision got less attention than others. After all, this is a bill that stabs the clean energy economy in the front, with rapid cancellations of consumer-facing tax credits and an accelerated phaseout of credits for new factories and other investment. The “prohibited foreign entity” language was more like a stab in the back."
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