Trump's tax rules still unclear to US clean-energy industry

Mark Chediak, Bloomberg News on Feb 13, 2026

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WASHINGTON — The Trump administration’s interim guidance on clean energy tax credits released Thursday offered some relief to the industry by laying out a manageable path for new projects. But, it still left investors uncertain.

The industry had been closely watching the long-awaited guidance, which spells out rules for calculating whether a project or manufacturing facility is eligible for lucrative tax credits based on material sourced from China or other U.S. adversaries. However, the guidance didn’t significantly address another key issue: restrictions on foreign ownership and control of those projects.

“Our sense is that this guidance may not do enough to allay the concerns” of some investors who finance clean energy projects to reap the tax benefits, Phil Shen, a clean energy analyst at Roth Capital Partners, wrote in a research note Friday.

Leading banks including JP Morgan Chase & Co. and Morgan Stanley have been reluctant to provide financing over concerns they could face scrutiny about foreign ownership rules. Potential financing fears add another threat to the clean energy industry, which has been battered by U.S. President Donald Trump’s aggressive policies designed to stymie the build out of renewable power.

Under a tax-and-spending bill passed by Republicans last year, companies seeking to claim tax credits are subject to limits based on financial ties to China, a major provider of components used in clean energy projects. When providing financing, the banks often take a passive equity stake in projects, which exposes them to foreign ownership rules.

That uncertainty could weigh on some solar, wind and battery projects until the Treasury Department provides further guidance on ownership later this year. Final rules have yet to be issued.

Still, the clarity around Chinese component limits to claim tax credits offers a route for renewable energy manufacturers and developers that is a positive for companies including Tesla Inc. and Enphase Energy Inc., analysts for research group Capstone said in a note.

The “guidance creates achievable compliance pathways,” the analysts wrote. It limits the amount of subcomponents that need to be tracked such as raw materials sourced from China, the analysts said.

Equity analysts, including Jeffries’ Julien Dumoulin-Smith, said the rules issued Thursday were aligned with expectations and left little room for surprise.