Buy America / BABA: Domestic Content Rules for Infrastructure
A different federal program from FEOC and the IRA domestic content bonus — triggered by how a project is funded, not how it's owned or taxed. Here's what it actually requires.
Key takeaways
- Build America, Buy America (BABA) applies to infrastructure projects that receive federal financial assistance; how the project is funded triggers it.
- It is a different program from FEOC rules and the IRA domestic content bonus.
- It covers iron and steel, manufactured products and construction materials. Waivers exist, but the federal awarding agency issues them, not the buyer.
On this page · 6 sections
What BABA actually is
The Build America, Buy America Act (BABA) was enacted as part of the 2021 Infrastructure Investment and Jobs Act (IIJA). It requires that infrastructure projects receiving federal financial assistance — grants to states, municipalities, utilities, and agencies, not direct federal procurement — use domestic iron, steel, manufactured products, and construction materials. The Office of Management and Budget implemented the initial government-wide guidance (OMB M-22-11 and subsequent memos), and individual funding agencies (DOE, DOT, EPA, and others) have layered their own program-specific guidance on top.
This is a different, older lineage than the original 1933 Buy American Act, which governs direct federal government procurement. BABA is specifically about federal financial assistance flowing to non-federal recipients for infrastructure — which is exactly the funding mechanism behind a lot of grid, EV charging, and broadband buildout since 2022.
BABA vs. the IRA domestic content bonus — not the same thing
It's easy to conflate this with the domestic content bonus credit covered in the FEOC compliance guide, but they're triggered by completely different mechanisms:
| BABA | IRA domestic content bonus | |
|---|---|---|
| Trigger | Project receives federal financial assistance (a grant) | Project ownership elects a specific tax credit structure |
| Legal basis | IIJA (2021), implemented via OMB/agency guidance | Inflation Reduction Act (2022) tax code provisions |
| What it governs | Sourcing of iron, steel, manufactured products, construction materials | Percentage of domestic manufactured product/component cost for a tax credit adder |
| Applies regardless of tax election? | Yes — funding source is what matters | No — only matters if claiming this specific bonus |
A project can be subject to BABA, the IRA bonus, both, or neither, depending entirely on how it's funded and owned. Screening for one doesn't clear the other — they need to be checked independently.
The three material categories
- Iron and steel — all manufacturing processes, from initial melting through final finishing, must occur domestically.
- Manufactured products — the product must be manufactured in the US, and the cost of domestic components must exceed a specified percentage of total component cost.
- Construction materials — non-ferrous metals, plastics, glass, lumber, and similar materials used directly in construction, each with its own domestic-content standard.
Waivers exist — but the buyer doesn't grant them
Federal awarding agencies can issue waivers under three categories: public interest, nonavailability (the item isn't reasonably available domestically in sufficient quantity or quality), or unreasonable cost (domestic content would raise total project cost above a specified threshold). Waivers are typically proposed by the agency and opened for public comment before being finalized — a buyer or contractor can request one be considered, but can't self-certify a waiver the way they might self-certify domestic content.
What to document
- Manufacturer certifications of domestic origin for iron, steel, and manufactured products, tied to the specific units being purchased — not a general company letterhead claim.
- Which BABA category each component falls under (iron/steel, manufactured product, or construction material) — the compliance standard differs by category.
- Awareness of applicable published waivers for the specific funding agency and program before assuming a component is non-compliant.
This guide is general information, not legal advice — confirm BABA applicability and waiver status for your specific award with the funding agency and your own counsel before relying on it for compliance decisions.
Frequently asked questions
What is the Build America, Buy America Act (BABA)?
BABA is part of the 2021 Infrastructure Investment and Jobs Act (IIJA). It requires that infrastructure projects receiving federal financial assistance (grants to states, utilities, and agencies) use domestic iron, steel, manufactured products, and construction materials, subject to certain waivers, as implemented through OMB guidance.
How is BABA different from the IRA domestic content bonus credit?
They're triggered by different things. BABA applies based on the funding source — whether the project receives federal financial assistance — regardless of tax status. The IRA domestic content bonus is a tax-credit adder tied to a project's ownership and tax election, independent of whether any federal grant funding is involved. A project can be subject to one, both, or neither depending on how it's funded and owned.
Can a project get a waiver from Buy America requirements?
Yes, under specific categories: public interest, nonavailability (the item isn't reasonably available domestically in sufficient quantity or quality), or unreasonable cost (domestic content would raise total project cost by more than a specified threshold). Waivers are granted by the federal awarding agency, not the contractor or buyer, and are typically published for public comment first.
What documentation should a buyer gather for BABA compliance?
Manufacturer certifications of domestic origin for iron, steel, and manufactured products; a record of which BABA category (iron/steel, manufactured products, or construction materials) each component falls under; and awareness of any waivers already published by the specific funding agency for the applicable program.
Next steps
The Data Centers, Renewables, and Battery Storage sectors flag domestic-content and FEOC-clean sourcing options at the configuration stage where they apply. If your project is also navigating the interconnection process, see the grid interconnection guide; for the separate IRA domestic-content bonus question, see the FEOC compliance guide.
Read next
- FEOC Compliance for Solar & Storage: A Practical GuideWhat FEOC rules mean for solar and storage projects, what documentation to gather, and how they interact with the domestic content bonus.
Equipment
- Renewable Plant AC CollectionThe transformers and switchgear where domestic-content rules bite hardest.
Cite or link to this guide
Free to quote with attribution. Suggested citation: Voltfield Editorial Team, “Buy America / BABA: Domestic Content Rules for Infrastructure,” Voltfield, updated August 23, 2026. https://voltfield.org/guide-buy-america-iija.html
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