The Uniform Beauty Act (OBBBA) establishes new rules for which types of solar products are eligible for certain tax credits. The Foreign Entity of Concern (FEOC) rules refuse to provide federal investment tax credits to projects that use too many Chinese components, and prevent US made products that use too many Chinese components from obtaining Section 45X credits. For the solar panel market, this is a complex operation and it is almost impossible to completely avoid using certain Chinese components in the final product.

The FEOC rules also refuse to provide tax credits to companies that have Chinese investments or operate under Chinese technology licenses. The market is still waiting for the final explanation from the Ministry of Finance (now expected to be released at some point in 2026), but since HR1 was passed, there has been a wave of clean-up in the supply chain and finance.

Companies with manufacturing factories in the United States under the influence of China have been selling or changing business ownership to comply with assumed FEOC requirements. JinkoSolar sells its Dallas solar panel assembly plant to T1 Energy; JA Solar sells its Phoenix solar panel factory to Corning; And Canadian Solar has established a new US division to own its solar panel and battery business related to the US market. Roth Capital Partners stated that multiple contacts in Washington have stated that "the government knows what FEOC is, and if the majority of the business is in China and the intellectual property used is Chinese [or] Chinese companies have effective control, then no matter how many reorganizations, ownership changes, or legal operations are carried out, it is unlikely to be effective. ”