Guidance to Apply Interim Safe Harbors for Purposes of Determining a Taxpayer’s Material Assistance from a Prohibited Foreign Entity; Other Prohibited Foreign Entity Guidance (Notice 2026-15)

Good Energy Collective, a nuclear policy and research organization, submitted an analysis highlighting the significant compliance costs and supply chain constraints associated with the prohibited foreign entity (PFE) rules for nuclear projects. They argue that while the policy goals are important, the current framework may disproportionately burden developers and suggest that a component-by-component schedule or phased approach is necessary to ensure the economic viability of new nuclear power plants.