FEOC screening · 45X · 45Y · 48E

Is your supplier a Prohibited Foreign Entity (PFE)?

Type a company’s name. We check the federal lists, then who owns it, who controls it and who lends to it.

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Automated prescreen. For a verdict you can file, order the full report.

The rule

Share of cost that must come from other suppliers

Your facility

20262027202820292030

A prohibited foreign entity cannot claim 45X, 45Y or 48E. A facility or component also fails when too much of its cost comes from one.

IRC §7701(a)(51) and (52) →

The tests

Held from a covered nation, at or above

One owner25%
Owners together40%
Lenders15% of debt

Other checks

Federal list
IP licensing
Board seat

Any one of these makes a supplier a prohibited foreign entity. The covered nations are China, Russia, Iran and North Korea.

The 25% threshold, explained →

The record

Supplier certification

PFE owner

None

Under penalties of perjury

Registry filing

ShareholderStakeHolding A70%

Holding B (CN)30%

A signed certificate is the supplier’s word. You can rely on it only if you had no reason to know it was wrong.

§6695B and the certification →

The outcome

A result for each of the five tests, with every finding sourced.

Three outcomes

FEOC Screening Report · Example supplier

Executive summary

Verdex screened the supplier against the prohibited foreign entity (PFE) rules in IRS Notice 2026-15, using public and registry records. The screen has five tests: statutory lists, ownership, effective control, debt and certification.

The supplier fails no test, and three need review. The table below gives each test's result and the gaps to fill.

Screening results

Test	Result	Basis	Gaps
Statutory lists	Passed	No match on the federal lists, read on the screening date.
Ownership	Needs review	Held by a Singapore company whose owners are not on public record.	Holding company’s shareholder register
Effective control	Passed	No board, licence or supply tie to a covered nation.
Debt	Needs review	No public lender data for a private company.	Lender schedule from the supplier
Certification	Needs review	None on file.	Signed supplier certification

Report record

Prepared for
Prepared by	Verdex · automated screen from public and registry records
Screening ID	VX-0000

Page one, as it prints. The supplier is an example. Pages two on set out each test, then the sources.

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