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Foreign Entity of Concern (FEOC) restrictions prohibit the use of Chinese, Russian, Iranian, and North Korean components in ITC-eligible solar projects. Understanding compliance is critical for maintaining tax credit eligibility.
It depends on the specific panels and FEOC compliance calculations. Some Chinese-branded panels assembled in Southeast Asia may meet the 40% non-FEOC threshold if sufficient component value originates outside FEOC countries. However, using US-manufactured panels is the safest approach and qualifies for the additional 10% domestic content bonus.
Cannot use components from FEOC countries (China, Russia, Iran, North Korea)
40% non-FEOC threshold for manufactured products in 2026
Battery storage FEOC restrictions already in effect (2025)
Threshold increases to 50% in 2027
Violation disqualifies project from ITC entirely
Domestic content bonus requires exceeding FEOC minimums
All commercial solar projects seeking ITC or production tax credit
Applies to solar panels, inverters, batteries, and racking
Includes both direct and indirect component sourcing
Verify manufacturer country of origin for all major components
Maintain documentation of supply chain sourcing
Battery components must be non-FEOC as of 2025
Solar panel cells and modules assessed for FEOC content
Battery FEOC restrictions take effect
40% non-FEOC manufactured product threshold
Begin construction deadline for current IRA rules
Threshold increases to 50%
30% (6% without prevailing wage)
The Section 48E Investment Tax Credit provides a 30% credit on commercial solar installations that meet prevailing wage and apprenticeship requirements. This is the cornerstone federal incentive for commercial solar.
5-year depreciation + 20% bonus (2026)
Modified Accelerated Cost Recovery System (MACRS) allows businesses to depreciate commercial solar equipment over 5 years, with 20% bonus depreciation in 2026.
+10% bonus
An additional 10% ITC bonus for commercial solar projects that use US-manufactured components meeting specific domestic content thresholds.
It depends on the specific panels and FEOC compliance calculations. Some Chinese-branded panels assembled in Southeast Asia may meet the 40% non-FEOC threshold if sufficient component value originates outside FEOC countries. However, using US-manufactured panels is the safest approach and qualifies for the additional 10% domestic content bonus.
Precios específicos del sitio con cálculos exactos de incentivos. Sin obligación.