The share of domestic cost required rises from 40 percent to 60 percent
What the document says“The term `material assistance from a prohibited foreign entity' means--”
The section adds a new paragraph (52) to section 7701(a) of the Internal Revenue Code of 1986 defining material assistance from a prohibited foreign entity as a material assistance cost ratio below the threshold percentage for the facility or component. For a qualified facility the threshold is 40 percent where construction begins in calendar year 2026, 45 percent in 2027, 50 percent in 2028, 55 percent in 2029, and 60 percent after December 31, 2029, with separate thresholds for facilities producing eligible components.
What the document actually says“The term `material assistance from a prohibited foreign entity' means--”
The term covers a cost ratio that falls below a set line. The two cases that follow say which line.
The line rises year by year. It starts at 40 percent for work begun in 2026. It reaches 60 percent for work begun after 2029.
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