WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today voiced strong support for the Foreign Entity of Concern (FEOC) Excise Tax included in the Senate version of President Trump’s landmark “One Big Beautiful Bill.” This critical provision imposes a financial penalty on solar projects that use components from adversarial foreign entities—particularly China—to safeguard American solar manufacturers and protect U.S. national security.
“CPA strongly endorses the FEOC Excise Tax in the Senate reconciliation bill as a critical step in protecting America’s solar manufacturing industry from reliance on subsidized and compromised Chinese components,” said CPA President Jon Toomey. “Given China’s massive subsidies to its solar industry, its use of space labor, and recent revelations about rogue communication devices found in Chinese solar inverters, there is an urgent need for rigorous safeguards. This FEOC excise tax directly forces developers to source domestically produced solar equipment instead of Chinese product — enhancing our national security, supporting American manufacturing jobs, and preventing adversaries from embedding spyware in our critical energy infrastructure.”
The FEOC Excise Tax specifically applies to solar energy facilities constructed between June 16, 2025, and December 31, 2035. It penalizes projects exceeding set thresholds of content from prohibited foreign entities (PFEs), imposing a financial disincentive on developers relying heavily on foreign-sourced solar components. This approach provides robust protection against unfairly subsidized Chinese solar equipment, which poses documented cybersecurity threats to the U.S. power grid.
The Reuters report highlighting rogue communication devices embedded in Chinese-made solar inverters underscores the immediate need for stringent domestic sourcing requirements and enforcement mechanisms to secure America’s solar infrastructure.
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