Brown & Brown: FEOC rules raise tax credit risks for renewable energy projects
BRO•Foreign Entity of Concern restrictions could threaten renewable energy tax credit eligibility and project economics, while tax insurance may cover some losses from IRS challenges, subject to policy terms and third-party analysis.
1. Tax credit exposure
Foreign ownership, financing or supply-chain connections could reduce or disqualify renewable energy tax credits or require repayment, creating risks for project economics. Regulatory uncertainty complicates capital commitments before Treasury and IRS guidance is complete. Brown & Brown says tax insurance may cover losses from IRS challenges to well-supported FEOC positions, subject to policy terms and robust third-party analysis, and highlights early diligence on ownership, financing and supply chains.
