The Trump administration has issued new Treasury guidance limiting the use of Chinese materials and components in U.S. clean energy projects, further restricting eligibility for federal tax credits. The rules bar battery cells, solar wafers and other equipment sourced from China and other U.S. adversaries, and imposes additional constraints tied to company ownership and financial links, with the IRS empowered to audit compliance for up to six years. The guidance, part of Trump’s tax-and-spending law, is expected to significantly affect solar, wind and battery projects that rely on Chinese supply chains, though projects approved before January 1, 2026 are exempt. Chinese solar stocks fell following the announcement, while U.S. industry groups said the clarity would support domestic manufacturing and reduce reliance on Chinese suppliers.
