45X-eligble inverters are not part of foreign ban, FCC clarifies

The Federal Communications Commission (FCC) released two clarifications on its import ban on foreign-produced inverters. Last month, the FCC added foreign-produced inverters to a list of communications products and services that it considers a risk to national security, citing alleged risks for supply chain and cybersecurity for electrical infrastructure. Only international inverters conditionally approved by the FCC can be imported into the United States. Receiving that designation requires submitting an application to the FCC. One clarification is with what is considered to be foreign-made. Previously, FCC defined a domestic inverter as one with 65% U.S. content, based on Build America Buy America Act calculations, stated Norton Rose Fulbright. After receiving input from the Dept. of War, FCC now says that if inverters are eligible for the advanced manufacturing tax credit (45X), they’ll be treated as domestically-produced. The Dept. of War said that foreign-produced inverters that are eligible for clean energy tax credits “do not pose unacceptable risks” to the country’s national security. Already, manufacturers accessing the 45X credit must not receive any material assistance from a prohibited foreign entity. Therefore, the Trump administration has determined that foreign-produced inverters that comply with section 45X are eligible for a domestic production tax credit and therefore considered “domestically-produced.” The nationality of the manufacturing company does not matter. Secondly, the FCC has clarified that both wired and wireless inverters are included in the ban. Previously, the commission described worry over inverters that could be accessed remotely by foreign adversaries. The Dept. of War said that ability could happen wirelessly or through Ethernet or similar connections. The ban is effective immediately on new inverter models. Any inverters previously installed and/or previously approved by the FCC are not affected and can continue operating in the United States. Tell Us What You Think!