ELFA Submits Comments on IRS FEOC Guidance

Earlier this week, ELFA submitted comments to the Internal Revenue Service (IRS) and U.S. Department of the Treasury on the recent foreign entity of concern (FEOC) guidance under the One Big Beautiful Bill Act (OBBBA). ELFA welcomed the guidance as a critical component for renewable energy financing and as part of a broader effort to provide greater certainty for market participants, while highlighting key areas where additional clarity is needed. This especially applies to the rules where the intention was to simplify compliance. The association’s primary concern is how the guidance defines “taxpayer,” which affects how key provisions are applied in common financing structures. ELFA recommended providing a more administrable and predictable framework by defining the taxpayer as the first party to acquire components for a project, noting this would better reflect industry practice, reduce uncertainty, and support the continued flow of capital into clean energy projects. ELFA continues to monitor IRS guidance on the OBBBA and will update members as the association weighs in. Long Awaited Basel III Proposal Released Last Thursday, the Federal Reserve, OCC, and FDIC released the updated Basel III proposal. The revision of the framework included significant focus on risk sensitivities and the potential impact of certain capital requirements. It includes a more formulaic approach to capital, which further breaks down sensitivities and applies them to prescribed risk weights. Given that the role of collateral in the risk evaluation differs from the current framework and does not accurately reflect historical or structural risk characteristics, ELFA is continuing to evaluate how these changes and sensitivities will ultimately affect required capital levels. We are also assessing what the calculation process will look like and the extent of the complexity it will create for members. ELFA will continue to provide updates, as our team works through the proposal and gains a clearer position on the policy implications. Fenig Award Nominations The nomination period for the David H. Fenig Distinguished Service in Advocacy Award is now underway. We encourage you to nominate a fellow ELFA member who has contributed to ELFA’s federal or state advocacy efforts and has exhibited dedication to pushing the ELFA policy agenda forward. Please send your nominations to Sally Cress, at scress@elfaonline.org by April 25th. For any questions regarding these new developments, please contact our Director of Federal Government Relations, Allyson Gale .

Advocacy

FEDERAL

LEGAL

STATE

Research

FINANCIAL INSIGHTS

ACTIONABLE ANALYSIS

Education

CURRICULUM

TRAINING & DEVELOPMENT

COMMUNITIES

Events

ELFA Submits Comments on IRS FEOC Guidance

Member Exclusive Content

Our site uses cookies