US Details New China Limits for Clean Energy Tax Credits

Article content(Bloomberg) — The Trump administration issued new guidance on the use of foreign materials and components in US clean energy projects, in a move that would further limit access to lucrative tax credits.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentGuidelines issued by the Treasury Department Thursday detail restrictions affecting battery cells, solar wafers and other equipment commonly used in renewable energy projects. Among other limits, the rules bar material from China and other US adversaries, and lay out other constraints based on company ownership or other financial ties to the Asian nation. The provisions include the ability of the Internal Revenue Service to audit for compliance within six years. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe rules, when finalized, could have an outsized influence on many solar, wind and battery projects because many developers rely on materials from China. Companies have been eagerly awaiting the guidance so they can make final investment decisions for their installations. Several large leading investment banks have been hesitant to make clean energy investments until the new foreign ownership rules are laid out. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentChinese solar stocks fell on Friday.

Jinko Solar Co. dropped as much as 4.7%, Trina Solar Co. were down as much as 2.9% and Longi Green Energy Technology Co. slipped 1.3%. The declines tracked a wider downturn in regional equities markets.Article contentThe notice offers clearer guidance to domestic solar manufacturers weighing investments in the US, Mike Carr, executive director of the Solar Energy Manufacturers for America Coalition, said in a statement. “The additional clarity will help advance the urgent task of de-risking America’s energy supply chains from Chinese influence,” he said.Article contentThe restrictions, which were part of President Donald Trump’s signature tax-and-spending bill, follow an executive order in July signaling stricter limits for the tax credits.Article contentArticle contentIn anticipation of the new rules, some clean energy companies with ties to China have moved their operations to the US or reduced financial ties to Chinese firms.Article contentThe latest guidance aligns with expectations and does not impose any unexpected compliance burdens, Mike Hall, chief executive officer of solar pricing and data provider Anza Renewables, said in a statement. “It’s important to remember that these guidelines don’t apply to projects that were safe harbored before January 1, 2026,” he added.Article content—With assistance from Tassia Sipahutar.Article content(Updates with moves in Chinese solar stocks and comments from 4th paragraph.)Article contentTrending Ontario issues first permit that opens up old mine tailings for exploration Mining As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas CRA charged taxpayer instalment interest before he received all his GIC income Taxes As Canadian bond yields fall, watch for fixed rates to follow Mortgage Rates For some Canadian travellers in Cuba, getting home is not so easy Airlines Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Ontario issues first permit that opens up old mine tailings for exploration Mining As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas CRA charged taxpayer instalment interest before he received all his GIC income Taxes As Canadian bond yields fall, watch for fixed rates to follow Mortgage Rates For some Canadian travellers in Cuba, getting home is not so easy Airlines