AUSTIN, Texas — Battery energy storage provider Moment Energy announced it has received independent legal verification of its non-Prohibited Foreign Entity (non-PFE) status and full Foreign Entity of Concern (FEOC) compliance for its commercial battery energy storage system (BESS).
The milestone makes Moment Energy the first BESS supplier in North America to achieve third-party verified non-PFE status alongside full FEOC compliance, providing energy storage project developers with verified eligibility for federal Investment Tax Credits (ITC). In practice, this means U.S. project developers using Moment Energy’s BESS can more confidently claim federal Investment Tax Credits without risking a 10-year clawback if supply chain rules are later challenged.
Compliance Verification Overview
| Compliance Parameter | Details & Review Scope |
|---|---|
| Independent Verification | Conducted by a Top 10 U.S. law firm covering corporate ownership, effective control, and debt financing structures. |
| Regulatory Framework | One Big Beautiful Bill Act & U.S. Treasury Interim Guidance (Notice 2026-15). |
| Recapture Exposure | Protects project developers against ITC forfeiture and 10-year federal tax credit clawbacks. |
| Supply Chain Strategy | Reengineered second-life EV batteries paired with FEOC-compliant Power Conversion Systems (PCS). |
Mitigating Investment Tax Credit Clawback Risks
Federal guidelines under the One Big Beautiful Bill Act and U.S. Treasury Notice 2026-15 have introduced stricter foreign supply chain restrictions for clean energy developers claiming Section 48E tax credits. BESS projects using components sourced from Prohibited Foreign Entities or failing FEOC standards risk losing federal ITC benefits, exposing owners to a 10-year recapture period.
James Brady, Vice President of Finance at Moment Energy, stated:
“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.”
“Investment Tax Credit eligibility is fundamental to successful U.S. project economics. We’ve invested heavily in independent legal verification because buyers shouldn’t have to take a manufacturer’s word for it when so much capital is potentially at risk.”
Second-Life EV Batteries and North American Supply Chain Alignment
Moment Energy manufactures its commercial energy storage systems in Texas and British Columbia using repurposed electric vehicle battery modules already located in North America. By reengineering second-life cells, the company avoids reliance on newly manufactured foreign battery cells while establishing a domestic supply chain base.
The systems integrate FEOC-compliant Power Conversion Systems (PCS) to satisfy federal equipment requirements. Moment Energy confirmed its supply chain is structured to meet increasingly strict Material Assistance Cost Ratio (MACR) rules through 2030 as current Treasury implementation progresses.
Edward Chiang, CEO and Co-Founder of Moment Energy, noted:
“The rules around battery supply chains are becoming increasingly stringent, yet many BESS companies are failing to do the necessary FEOC due diligence. Customers shouldn’t have to gamble valuable tax credits on whether their supplier is a Prohibited Foreign Entity (PFE) or if they’ve properly vetted their own product.”
“We’ve built our supply chain around these requirements and subjected it to rigorous third-party legal scrutiny so our customers can move forward with absolute confidence in their Investment Tax Credit eligibility.”
Federal Policy Engagement & Industry Guidance
Following the initial release of U.S. Treasury interim guidance, Moment Energy submitted formal regulatory comments and met directly with Treasury officials to offer market feedback on implementing non-PFE and FEOC requirements.
To assist developers in navigating Notice 2026-15 and supply chain verification, the company is hosting a technical webinar covering tax credit compliance strategies and risk management for project developers. Register for the webinar here.
FAQ: Moment Energy Non-PFE & FEOC Verification
What does Moment Energy’s non-PFE and FEOC compliance verification mean for BESS buyers?
It provides independent legal confirmation that Moment Energy’s ownership structure and BESS equipment comply with federal supply chain rules, protecting access to Investment Tax Credits (ITC).
How was Moment Energy’s compliance status verified?
A Top 10 U.S. law firm conducted a legal review scrutinizing Moment Energy’s corporate ownership, operational control, debt financing, and component supply chain.
Why is second-life EV battery technology relevant to FEOC compliance?
Repurposing EV batteries already in North America reduces dependency on newly imported battery cells and foreign-linked supply chains, aiding alignment with U.S. domestic sourcing thresholds.
