Overview
There aren’t many situations where the government effectively says, “We’re giving the money back.”
That’s what is now happening for certain importers.
Following a recent Supreme Court decision, tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, from 2025 through early 2026 have been struck down, and U.S. Customs and Border Protection has opened a process for eligible importers to request refunds.
For many companies, this represents real cash coming back. For Walker Blue clients, it goes a step further: it is also a strategic planning opportunity.
What Happened and Why It Matters
- Tariffs were imposed under IEEPA beginning in February 2025.
- On February 20, 2026, the Supreme Court struck down those IEEPA tariffs.
- The ruling invalidated the IEEPA tariff regime, and CBP has opened a process for eligible importers to request refunds.
- As of April 20, 2026, CBP launched Phase 1 of its CAPE tool within the ACE Secure Data Portal to begin processing eligible IEEPA refund claims.
CBP expects approved IEEPA tariff refunds to be issued electronically within approximately 60 to 90 days after acceptance, absent compliance concerns.
However, timing matters. CAPE is being rolled out in phases, and Phase 1 does not apply to every entry type or claim scenario.
Who Qualifies
Eligibility is relatively straightforward, but the filing mechanics matter:
- Tariffs must have been paid under the IEEPA regime between February 2025 and February 2026.
- The claimant must be the Importer of Record, or an authorized customs broker filing on the Importer of Record’s behalf.
- The claim must relate to IEEPA duties, not tariffs imposed under other authorities such as Section 232 or Section 301.
- Supporting import, payment, classification, and entry documentation must be available to substantiate amounts paid.
- The entry must fall within the applicable CAPE filing phase or be addressed through a later CBP process.
While the criteria are simple on paper, compiling and validating the necessary data can be more involved.
Why This Matters for Walker Blue Clients
Most organizations will treat this as a one-time recovery exercise. For energy, infrastructure, and manufacturing clients, the implications are broader.
1. ITC Basis Considerations
Imported equipment, such as solar components, transformers, geothermal systems, and battery storage, may have included tariff costs in project basis.
With refunds now available, companies need to evaluate:
- Whether previously claimed basis should be adjusted.
- Whether the refund should be treated as taxable income.
- How this impacts credits already claimed or currently in process.
Addressing this proactively can help avoid future audit exposure.
2. Domestic Content Strategy
This development comes at a time when domestic content requirements remain a key driver of enhanced credit eligibility.
Although the refund process does not itself determine domestic-content eligibility, it may affect the economics of imported versus domestic sourcing and should be considered alongside IRA procurement and credit-planning decisions.
Companies now have an opportunity to:
- Reassess sourcing strategies.
- Balance cost recovery with long-term compliance.
- Align procurement decisions with IRA incentive structures.
3. Cash Flow Impact
For developers, ESCOs, and project owners, these refunds may represent near-term liquidity.
Potential uses include:
- Offsetting project cost overruns.
- Improving project-level returns.
- Supporting pipeline development without additional capital raises.
4. Documentation and Audit Alignment
Refund claims may generate detailed records of:
- Imported equipment.
- Classification and valuation.
- Project allocation.
This data often overlaps with:
- ITC claims.
- 179D studies.
- Cost segregation analyses.
Misalignment across these areas can create unnecessary audit risk if not addressed early.
Recommended Next Steps
Organizations should consider the following actions:
Identify Exposure
- Gather import records from February 2025 through February 2026.
- Confirm Importer of Record status.
- Identify which payments were made under the IEEPA regime.
Quantify Refund Opportunity
- Calculate IEEPA tariffs paid.
- Map imports to specific projects or assets.
- Separate IEEPA duties from tariffs imposed under other authorities.
Evaluate Tax Implications
- Assess the impact on ITC basis, depreciation, and income recognition.
- Coordinate across tax, customs, finance, and engineering teams.
- Evaluate whether prior or pending credit positions may need to be adjusted.
Act Promptly
- Determine whether entries are eligible under the current CAPE phase.
- Submit claims while the applicable process remains available.
- Maintain documentation that supports both the refund claim and related tax positions.
How Walker Blue Supports Clients
This is a cross-functional issue involving tax, engineering, customs, and project-level data.
Walker Blue supports clients by:
- Mapping imported equipment to energy and infrastructure projects.
- Evaluating ITC basis implications prior to filing refund claims.
- Aligning domestic content strategies with updated cost structures.
- Coordinating documentation support aligned with IRS expectations.
Conclusion
The IEEPA tariff reversal is more than a refund opportunity. It is a limited window to:
- Recover cash.
- Strengthen tax positions.
- Improve project structuring moving forward.
Organizations that take a coordinated approach across tax, engineering, customs, and compliance functions will be best positioned to capture the full value.
Next Steps
If your organization imported equipment tied to energy or infrastructure projects during this period, it is worth evaluating the opportunity.
Walker Blue can provide a preliminary assessment based on limited information to determine:
- Whether a refund may be available.
- How it may impact existing tax positions.
- What actions should be prioritized.
For additional information or to schedule a review, please contact the Walker Blue team.
This article is intended as a general planning overview and should not be treated as legal, customs, or tax advice for any specific taxpayer, importer, or transaction.
