The One Big Beautiful Bill Act (OBBBA), signed into law July 4, expanded restrictions on Foreign Entity of Concern (FEOC) rules established by the Inflation Reduction Act in 2022. In this latest installment of the Renewable Energy Tax Credit Finance Series, Novogradac partners Tony Grappone, CPA, and Nicolo Pinoli, CPA, dive into the evolution of FEOC rules and how they affect a project's eligibility for renewable energy tax credits (RETCs). They then clarify the difference between types of prohibited foreign entities and identify key FEOC compliance issues of which developers and investors should be aware. Finally, they review the timeline of effective dates, as well as the penalties and recapture risks for non-compliance.