Components with barred foreign help and barred firms are shut out
What the document says“the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity”
The section adds a new subparagraph (C) to section 45X(c)(1) of the Internal Revenue Code of 1986 so that from a taxable year beginning after enactment an eligible component does not include property involving material assistance from a prohibited foreign entity, with one date in that definition read as January 1, 2027 in place of January 1, 2030. It also adds a new paragraph (4) to section 45X(d) barring the credit where the taxpayer is a specified foreign entity or a foreign-influenced entity, or where the effective control test applies and relates to an eligible component.
What the document actually says“the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity”
A part does not count as eligible if it drew help from a barred foreign body.
The help must be of a kind the law calls material. A second bar covers the taxpayer itself. Both terms come from the tax code.
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