FEOC Exposure
What a Foreign Entity of Concern (FEOC) gap puts at risk
Enter a project size or eligible basis to see the clean-energy tax credit value a single FEOC compliance gap can disqualify. Illustrative estimate.
Project inputs
MW
$
/ W
Tax credit at risk
A single FEOC gap can disqualify
$36.0M
100% of the credit, not a reduction and not a penalty.
Eligible basis
$120M
Credit rate
30%
Credit value
$36.0M
How one gap costs you
1
Full disqualification
A single FEOC compliance issue disqualifies the entire credit. The full $36.0M is gone, not reduced.
2
Diligence and financing delays
Tax equity and construction debt will not close without evidence on ownership, sourcing and contractual control. Projects that cannot show it stall in diligence.
3
Recapture exposure
What is missed at filing does not go away. An audit years later can recapture credits already booked if the substantiation is not there.
Illustrative only. Figures are an estimate based on the inputs above and are not a forecast for any specific project or client. Installed cost per watt and credit rate are adjustable assumptions. Confirm the applicable credit rate, adders and recapture terms with qualified tax counsel.
NexusIQ™ covers all three FEOC tests across the recapture window.