Stricter foreign supply chain and business ownership rules were tacked onto clean energy tax credits that were not eliminated under the new budget reconciliation law, raising major compliance hurdles that have practitioners eagerly awaiting implementation rules from the US Treasury Department.
Developers will also need clarity on the type of ownership information required from their shareholders and any entities with which they have contractual relationships, Bracewell’s Peter Rogers told Law360.
“What would be very helpful is guidance that essentially sets forth a safe harbor and specifies that if a taxpayer gets these representations in an agreement or receives this sort of certification, the taxpayer can rely on that document unless the taxpayer has knowledge to the contrary,” he said.
Projects with beneficial owners, who ultimately own or control a company indirectly through a legal entity, may also want guidance, according to Rogers. Such ownership “is oftentimes confidential in many scenarios, so it can be a challenge to get all the relevant information.”
