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

The rule

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

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

TestResultBasisGaps
Statutory listsPassedNo match on the federal lists, read on the screening date.
OwnershipNeeds reviewHeld by a Singapore company whose owners are not on public record.Holding company’s shareholder register
Effective controlPassedNo board, licence or supply tie to a covered nation.
DebtNeeds reviewNo public lender data for a private company.Lender schedule from the supplier
CertificationNeeds reviewNone on file.Signed supplier certification

Report record

Prepared for
Prepared byVerdex · automated screen from public and registry records
Screening IDVX-0000
Page one, as it prints. The supplier is an example. Pages two on set out each test, then the sources.

Order a screening report.

Send the list. Get a verdict on each.