Foss & Company Q1 2026 Report: Navigating New Guidance

Q1 2026 was an active quarter for Foss & Company and the broader tax credit market. The Internal Revenue Service (IRS) released new guidance related to Foreign Entity of Concern (FEOC) restrictions and the Section 45Z Clean Fuel Production Tax Credit, creating important considerations across renewable energy, carbon and advanced manufacturing transactions. 

In response, Foss & Company published a Section 45Z guidance white paper and a Clean Fuel Tax Credit Primer to help investors and developers interpret the evolving rules. Our team has also been closely analyzing the practical implications of the FEOC guidance, advising clients on compliance, structuring and market impact. 

We contributed to the broader industry discussion through two Bloomberg Intelligence webinars following Notice 2026-15 and the One Big Beautiful Bill, examining how policy developments are reshaping capital structures, investor behavior and project execution strategies across solar, wind and carbon credits. 

As regulatory guidance continues to evolve, clarity and disciplined execution remain essential. 

Executing Across Energy & Infrastructure and Historic Tax Credit Markets 

Despite regulatory movement, the market continued to demonstrate resilience and opportunity. During Q1, Foss & Company closed transactions across transferable credits, traditional tax equity structures via energy and infrastructure projects as well as historic preservation projects. 

Clean Fuel & Transferable Tax Credit Transactions 

  • Project Kipling: Approximately $210 million of Section 45Z Clean Fuel Production Tax Credits across Michigan, Iowa, South Dakota, and Indiana.  
  • Project Surrey: Approximately $59.7 million of Section 48 Investment Tax Credits for a landfill gas-to-renewable natural gas facility in Ohio.  
  • Project Bowstring: Approximately $45 million of Section 48E Investment Tax Credits supporting a 2,800-system residential solar and battery portfolio in Puerto Rico.  

These transactions reflect the continued maturation of the transferable credit market and the increasing sophistication of clean fuel and distributed generation investments. 

Distributed Generation & Microgrid Investments 

Foss & Company executed multiple Section 48 tax equity investments across diversified portfolios: 

  • Project London II: $32.2 million Section 48 tax equity investment across CA, MD, and NY.  
  • Project London: $16.2 million Section 48 tax equity investment across ME, MD, and NY.  
  • Project Orchid: Approximately $24.6 million Section 48 ITCs financing a solar-plus-storage microgrid supporting transit electrification in Maryland.  

These investments reflect growing demand for hybrid solar-plus-storage and infrastructure-backed renewable assets. 

Historic Tax Credit & Redevelopment Investments 

Foss & Company also remained active in historic rehabilitation and redevelopment financing: 

  • 301 Winchester (WV): $4.6 million Federal and $5.8 million State Historic Tax Credits.  
  • Selfridge & Langford (NY): $2.7 million Federal and $2.7 million New York Historic Tax Credits.  
  • Atlantic Lofts (NJ): $8 million of historic tax credits brokered to a direct purchaser.  
  • Monon South Trail (IN): $6 million Indiana Redevelopment Tax Credit investment.  

These transactions underscore Foss & Company’s continued role in preserving historic assets while delivering long-term economic impact. 

Industry Engagement & Market Leadership 

In Q1, our team sponsored and participated in key industry conferences including Infocast Projects & Money, Infocast Solar & Wind, the Enhanced Geothermal Systems Conference and the TEI Midyear Conference. We spoke on panels addressing hybrid renewable structures, geothermal financing strategies and the implications of OB3 and Notice 2026-15 on renewable project finance. 

These engagements reflect our ongoing commitment to thought leadership and practical market guidance. 

Positioned for the rest of 2026 

As new FEOC rules and 45Z guidance continue to be interpreted, the tax credit market looks towards establishing more structure and compliance. Institutional investors are prioritizing durability, transparency and risk-managed execution. 

Foss & Company remains positioned at the intersection of policy fluency and disciplined capital deployment. We have navigated regulatory shifts before. We continue to focus on delivering clarity, execution and long-term value across energy and infrastructure and historic tax credit markets.

For questions about FEOC, Section 45Z, transferability structures or current market conditions, connect with Foss & Company to learn how we are helping investors and developers move forward with confidence.