US Treasury Releases Guidance on Clean Energy Tax Credit Rules Restricting Chinese-Made Equipment

The guidance is designed to reduce reliance on foreign supply chains.

The Treasury Department building in Washington on March 13, 2025. Alex Brandon/AP

The U.S. Treasury Department released interim guidance Thursday for enforcing provisions in President Donald Trump’s tax reforms that prohibit companies from claiming federal clean energy subsidies if they depend on equipment from China or other specified foreign nations.

The rules apply to valuable tax incentives for manufacturing clean energy equipment and generating electricity from renewable sources. Solar and wind project developers, along with factory operators, have been expecting this clarification since Trump signed the One Big Beautiful Bill Act into law last July.