IRS Issues Notice on Guidance to Apply Interim Safe Harbors for Purposes of Determining a Taxpayer’s Material Assistance from Prohibited Foreign Entity

The IRS has issued a notice providing guidance, under I.R.C. §45X, §45Y, and §48E, for determining a qualified facility’s, energy storage technology’s, or eligible component’s material assistance cost ratio (MACR), for purposes of determining whether there was material assistance from a prohibited foreign entity (PFE). The notice also includes guidance related to the definition of a PFE and requests comments regarding definitional, anti-circumvention, and other issues for future guidance. [IRS Notice 2026-15, I.R.B. 2026-11 (March 9, 2026)]