Partner Nicholas Mowbray shared his view on a new IRS restriction on clean energy tax credits in a Law360 article titled “Developers Stumped by Energy Credits’ Foreign Debt Limits,” published June 8, 2026. Under the statutory restriction, taxpayers claiming 45Y or 48E tax credits must be able to substantiate that no more than 15% of their total debt was “issued” to specified foreign entities. This is difficult to prove in many cases, especially for taxpayers with syndicated financings and multiple lenders. Mowbray indicated that analyzing each lender to determine its affiliations could be a monumental undertaking in many cases.
