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.
Automated screening. Not reviewed. For a verdict you can file, order the reviewed report.
The rule
Share of cost that must come from other suppliers
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
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 verdict for the compliance file, with every finding sourced and reviewed.
The four verdicts
FEOC Screening Report · Example supplier
Screening results
OverallCautionThe record is incomplete. No conclusion either way until the documents below arrive. Not a legal determination.
| Test | Result | What the record shows | Required to resolve |
|---|---|---|---|
| Statutory lists | Clear | Eleven names, five federal lists, pulled on the screening date. No match. | Nothing. Lists change, so the result is dated. |
| Ownership | Caution | The registry shows a holding company in Singapore above the supplier. Its owners are not in the public record. | The holding company’s shareholder register, dated. |
| Effective control | Clear | No board, licence or supply agreement with a covered-nation entity in the filings read. | Nothing. |
| Debt | Caution | No public lender data for a private company. The 15% threshold cannot be tested from the record. | A lender schedule from the supplier. |
| Certification | Caution | None on file. | The §7701(a)(52) supplier certification. Verdex supplies the template. |
Sources for each result are in the sections that follow.
Report record
| Prepared for | |
| Prepared by | Verdex · reviewed screen from public and registry records |
| Screening ID | VX-0000 |
Order a screening report.
Send the list. Get a verdict on each.