Austin, Texas – – September 13, 2026 -- Moment Energy has become the first battery energy storage system (BESS) provider in North America to secure third-party verified non-Prohibited Foreign Entity (non-PFE) status and full Foreign Entity of Concern (FEOC) compliance, the company announced. A Top 10 U.S. law firm conducted the independent review, examining Moment Energy's corporate ownership, effective control and debt financing structure.
Independent legal review confirms compliance status ahead of tightening federal rules
The verification arrives as the One Big Beautiful Bill Act has significantly raised FEOC and PFE requirements for companies seeking federal Investment Tax Credits (ITC). The U.S. Treasury has issued interim guidance through Notice 2026-15 to help taxpayers interpret the new rules, with further clarification expected as implementation proceeds.
Non-compliance risks a 10-year clawback of tax credits
Failure to meet FEOC and PFE requirements can trigger loss of the Investment Tax Credit and expose energy storage projects to clawbacks during a 10-year recapture period, altering project economics. "With a 10-year recapture period hanging over a project, customers need to know they can trust both the technology and the company behind it," said James Brady, Vice President of Finance at Moment Energy.
Second-life EV batteries reduce reliance on foreign cell supply chains
Moment Energy's systems are built from reengineered second-life EV batteries already located in North America, reducing dependence on newly manufactured battery cells. The company said this approach creates a more domestic and resilient storage supply chain compared with the foreign-linked battery sourcing that dominates the current U.S. market.
Systems integrate FEOC-compliant power conversion equipment
The battery storage systems pair with FEOC-compliant power conversion systems, giving customers a defined path to full FEOC compliance. Moment Energy said it is designing its North American supply chain to meet Material Assistance Cost Ratio requirements through 2030 under current rules, while preparing to adapt as regulations evolve.
Company engaged directly with U.S. Treasury on rule implementation
Moment Energy submitted formal comments to the Treasury and met with officials to share industry perspective on FEOC and PFE rule development. CEO and Co-Founder Edward Chiang said many BESS companies are failing to conduct necessary FEOC due diligence, leaving customers to gamble tax credits on unverified supplier claims. The company will host a webinar detailing the latest Treasury guidance and practical steps for protecting ITC eligibility.