Starting Jan. 1, 2026, manufacturers face a new compliance obligation under the One Big Beautiful Bill Act (OBBBA) related to foreign entities of concern (FEOC). These rules are meant to safeguard US clean energy incentives by restricting tax credits for projects or components tied to specific foreign entities or foreign-influenced entities. 

The requirements apply to key credits under IRC Sections 45Y, 45X and 48E, and include strict prohibitions on ownership structures, licensing agreements, and material assistance from prohibited foreign entities. Failure to comply could result in loss of eligibility for valuable tax credits and potential penalties. 

Join Baker Tilly as we break down the FEOC definitions, ownership thresholds and certification requirements manufacturers must meet. We’ll also cover:

• Practical steps for evaluating supply chains
• Mitigating compliance risks
• Preparing documentation to protect credit eligibility

Attendees will also learn how these rules intersect with domestic content provisions and what actions to take now to ensure readiness as the requirements take effect. 

Rob Bellile, Director, Baker Tilly

Rob is a director with Baker Tilly’s development and community advisory practice. With more than 10 years of experience serving the industrial sector, Rob excels in identifying key drivers of profitability within an operation and developing solutions to manage those key indicators on an ongoing basis. As a finance professional with experience serving the manufacturing industry, Rob develops solutions that result in real savings and process improvements for his clients.