Compliance
Compliance for US Businesses: New IRS Guidance & Reporting under the One, Big, Beautiful Bill
Recent IRS policy updates introduce stricter requirements for depreciation, energy tax credits, and fuel production—understanding these helps businesses stay compliant and avoid penalties.
By NomadicTax Research Team • 5-8 min read • March 28, 2026
## Major Compliance Changes
In February-March 2026, the IRS released several regulatory actions and guidance under OBBB that businesses must act on to remain compliant. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-february-2026?utm_source=openai))
### Special Depreciation Allowance for Qualified Production Property
Businesses with qualifying production property must ensure they are not receiving assistance from **prohibited foreign entities (PFEs)**, which could make them ineligible for certain energy-tax credits and depreciation benefits. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-february-2026?utm_source=openai))
### Clean Fuel Production Credit Rules
Proposed regulations clarify eligibility requirements and calculation rules for producers of clean transportation fuel, including definitions for ‘domestic’ content and sourcing requirements. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-february-2026?utm_source=openai))
### Adoption Tax Credit – Tribal Governments and Refundability
IRS clarified that Indian tribal governments must be recognized properly for purposes of making special needs determinations, and clarified general refundability rules under OBBB. This affects certain adoption tax credit claims. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-february-2026?utm_source=openai))
## Actionable Advice for Businesses & Tax Professionals
- **Review supply chains and foreign partnerships** if claiming energy-credit or clean fuel benefits. Relationships with PFEs could disqualify parts of your projects.
- Maintain strong documentation: purchases, sourcing, contracts, to prove meeting eligibility for new credit provisions.
- Contact partners (tribal governments, contractors) ahead of time to ensure recognition for credit eligibility (Adoption Credit cases).
- Get familiar with proposed regulations now—they often become binding once finalized, allowing some time to adjust systems.
## Practical Example
Imagine a renewable energy producer that builds solar panels. If components are sourced from a PFE, the facility might lose eligibility for energy credits. By auditing suppliers and replacing non‐compliant vendors, the business can retain eligibility and avoid retroactive disallowance.
## Compliance Costs and Risks
- Non-compliance can lead to **disallowed credits, penalties**, and interest accrual.
- Upfront cost for restructuring supply or documentation practices may be significant—but worth the risk mitigation.
- Proposed rules may bring administrative burdens: tracking eligibility, sourcing detail, and qualification status of partners.
## Conclusion
Keeping up with IRS guidance under OBBB is critical—businesses must act now to digest proposed regulations, verify eligibility, and adjust operations so that they don’t lose out or face penalties.