A facility built with help from a prohibited foreign entity does not qualify
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70512, Sec. 70512.
Written by .
A facility built with help from a prohibited foreign entity does not qualify
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70512 in the PDF
What the document says
“The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”
The section adds a new subparagraph (E) to section 45Y(b)(1) of the Internal Revenue Code of 1986 taking out of the term qualified facility any facility whose construction begins after December 31, 2025 where the construction includes material assistance from a prohibited foreign entity as defined in section 7701(a)(52).
What the document actually says
“The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”
That sentence, in plain words
A plant does not count if two things hold. Work on it starts after December 31, 2025. It drew help from a barred foreign body.
What this is about
The help must be of a kind the law calls material. The next rules set how that is measured. A plant that fails this gets no credit.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70512, 139 Stat. 252 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“A facility built with help from a prohibited foreign entity does not qualify,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70512, Sec. 70512. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70512-material-assistance/ (retrieved October 10, 2026).
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