Prohibited Foreign Entity Guidance for Public Power Utilities
These comments were submitted to the IRS on March 30, 2026, responding to Notice 2026-15 on the "Foreign Entity of Concern" (FEOC) framework established by the One, Big, Beautiful Bill Act. LPPC raises six areas needing clarification: strengthening the certification safe harbor and "reason to know" standard for complex supply chains; narrowing the broad "effective control" definition to exclude routine operational agreements; simplifying Material Assistance Cost Ratio (MACR) calculations for large standardized deployments; addressing timing mismatches between procurement and construction start dates; establishing a pre-filing guidance mechanism to reduce audit risk; and clarifying how the 15% debt threshold applies to publicly traded municipal debt.
