D1R7K0N Industries Group

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Renewable Energy & Clean Technology

28 July 2026

6 min read

BESS Procurement and FEOC: Battery Supply Chains Now Determine Tax Credit Eligibility

IRS Notice 2026-15 operationalized the Foreign Entity of Concern thresholds for battery energy storage projects, making supply chain documentation a prerequisite for Investment Tax Credit eligibility. Developers who treated FEOC compliance as a legal matter to resolve at financial close are discovering the obligation runs deeper than their supply agreements anticipated.

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