Spotlight on American Rare Earths, page-3953

From the COB forum and relevant to ARR

DOE Releases Final Interpretive Guidance on the Definition of Foreign Entity of Concern MAY 3, 2024.
The BIL defines a FEOC in part, as an entity that is “owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation.” Covered nations are defined in BIL as China, Russia, Iran, and North Korea. Pursuant to DOE’s guidance today interpreting this phrase, an entity is considered a FEOC if it is headquartered, incorporated or performing relevant activities in a covered nation, if 25% or more of its voting rights, board seats, or equity interest are held by the government of a covered nation, or if the entity is effectively controlled by a FEOC through a license or contract with that FEOC.Pursuant to the Treasury and IRS final rule on the section 30D Clean Vehicle Tax Credit, an EV containing battery components manufactured or assembled by a FEOC will be ineligible to receive the tax credit starting in 2024. Similarly, an EV with a battery containing critical minerals extracted, processed or recycled by a FEOC will be ineligible to receive this tax credit starting in 2025. In DOE’s Battery Materials Processing and Manufacturing grant program, the Office of Manufacturing and Energy Supply Chains (MESC) will prioritize applications that will not use battery material supplied by a FEOC.