Bill Details
S.369 - 119th Congress
Status
Latest action
2025-02-03 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-02-03
Policy Area
Taxation
Committees
View committees (1)
Sponsors
3
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would block a wide range of federal green energy tax breaks for companies tied to foreign adversaries. In simple terms, if a company is owned, controlled, heavily influenced, or closely financially connected to certain hostile foreign governments or related entities, it would not be allowed to claim major clean energy tax credits and deductions. The bill is meant to keep U.S. tax benefits from going to companies that could help foreign adversaries or depend on them in significant ways.
- It would deny a company access to many energy-related tax benefits, including credits and deductions for things like clean fuel, electric vehicles, carbon capture, renewable electricity, energy-efficient buildings, manufacturing, and certain fuel tax refunds.
- A company could be treated as “disqualified” if a foreign adversary government, or an entity from one, owns or controls it, holds at least 10% of its equity in some cases, or has material influence over it through ownership, management, contracts, leases, debt, or other financial arrangements.
- The bill defines “foreign adversary” using existing federal rules and also adds Cuba and, while Nicolás Maduro is president, Venezuela.
- The Treasury Department would be allowed to issue rules to help apply the law and prevent companies from getting around it.
Official Summaries
No Official Giveaways Of Taxpayers’ Income to Oppressive Nations Act or the NO GOTION Act
This bill prohibits certain entities associated with China, Cuba, Iran, North Korea, Russia, or the Maduro regime of Venezuela from claiming various energy-related federal tax incentives.
Specifically, certain energy-related federal tax incentives may not be claimed by
- the government, a government instrumentality, or an agency of China, Cuba, Iran, North Korea, Russia, or the regime of Nicolas Maduro in Venezuela;
- any entity that is organized under the laws of or is headquartered in one of these countries; or
- any entity that is owned, controlled, directed, or influenced by or that has certain financial or contractual connections with any such government, government instrumentality, agency, or entity.
Such entities may not claim the federal tax credits for
- alternative fuel vehicle refueling property,
- second-generation biofuel,
- biodiesel fuel,
- sustainable aviation fuel,
- renewable electricity production,
- carbon sequestration,
- zero-emission nuclear power production,
- clean hydrogen production,
- clean commercial vehicles,
- advanced manufacturing production,
- clean electricity production,
- clean fuel production,
- investments in energy property,
- advanced energy projects,
- clean electricity investment,
- biodiesel mixtures,
- alternative fuel, and
- alternative fuel mixtures.
Further, such entities are prohibited from claiming the federal tax deduction for energy efficient improvements to commercial buildings.
Finally, such entities are not entitled to a credit or refund of federal excise taxes paid on biodiesel, alternative fuel, or sustainable aviation fuel mixtures produced by the entities.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 369 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 369
To amend the Internal Revenue Code of 1986 to deny certain green energy
tax benefits to companies associated with foreign adversaries.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 3, 2025
Mr. Scott of Florida introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to deny certain green energy
tax benefits to companies associated with foreign adversaries.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Official Giveaways Of Taxpayers'
Income to Oppressive Nations Act'' or the ``NO GOTION Act''.
SEC. 2. DENIAL OF GREEN ENERGY TAX BENEFITS TO COMPANIES ASSOCIATED
WITH FOREIGN ADVERSARIES.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new section:
``SEC. 7531. DENIAL OF GREEN ENERGY TAX BENEFITS TO COMPANIES
ASSOCIATED WITH FOREIGN ADVERSARIES.
``(a) In General.--In the case of any disqualified company, this
title shall be applied without regard to sections 30C, 40, 40A, 40B,
45, 45Q, 45U, 45V, 45W, 45X, 45Y, 45Z, 48, 48C, 48E, 179D, 6426(c),
6426(d), 6426(e), and 6427(e).
``(b) Disqualified Company.--
``(1) In general.--
``(A) Definition.--For purposes of this section,
the term `disqualified company' means any entity
described in subparagraphs (B) through (D).
``(B) Foreign adversary parties.--The entities
described in this subparagraph consist of the
following:
``(i) The government of a foreign
adversary, any agency or government
instrumentality of a foreign adversary, or any
entity which is directly or indirectly owned,
controlled, or directed by any such government,
agency, or government instrumentality.
``(ii) Any entity organized under the laws
of a foreign adversary (or any political
subdivision thereof) or whose headquarters is
located within a foreign adversary.
``(C) Owned, controlled, directed, or influenced by
foreign adversary parties.--The entities described in
this subparagraph consist of the following:
``(i) Any entity for which, on any date
during the taxable year, not less than 10
percent of the outstanding equity interests (by
value, voting, governance, board appointment,
or similar rights or influence) are held
directly or indirectly by, or on behalf of, 1
or more of the entities described in
subparagraph (B), including through interests
in co-investment vehicles, joint ventures, or
similar arrangements.
``(ii) Any entity which is directly or
indirectly controlled, directed, or materially
influenced by any entity described in
subparagraph (B).
``(iii) Any entity for which the actions,
management, ownership, or operations of such
entity are subject to the direct influence of
an entity described in subparagraph (B).
``(iv) Any entity for which an interest in
such entity is held by an entity described in
subparagraph (B) (referred to in this clause as
the `beneficiary firm') as a derivative
financial instrument or through a contractual
arrangement between the beneficiary firm and
such entity, including any financial instrument
or other contract between the beneficiary firm
and the entity which seeks to replicate any
financial return with respect to such entity or
interest in such entity.
``(D) Debt or other arrangements with foreign
adversary parties.--
``(i) In general.--An entity is described
in this subparagraph if, as a result of any
prohibited obligation or arrangement--
``(I) the actions, management, or
operations of such entity are subject
to the direct or indirect influence of
1 or more entities described in
subparagraph (B) or (C), or
``(II) such entity provides a
substantial benefit to 1 or more
entities described in subparagraph (B)
or (C).
``(ii) Prohibited obligation or
arrangement.--For purposes of this
subparagraph, the term `prohibited obligation
or arrangement' means any--
``(I) debt,
``(II) lease or sublease
arrangement,
``(III) management or operating
arrangement,
``(IV) contract manufacturing
arrangement,
``(V) license or sublicense
agreement, or
``(VI) financial derivative.
``(iii) Exception.--
``(I) In general.--For purposes of
clause (i)(II), the purchase of
equipment or manufacturing inputs in an
arm's length transaction shall not, in
and of itself, be deemed to provide a
substantial benefit.
``(II) Arm's length.--For purposes
of this clause, the term `arm's length'
has the meaning given in section 1.482-
1 of title 26, Code of Federal
Regulations.
``(E) Other definitions.--For purposes of this
paragraph--
``(i) Control.--The term `control' has the
meaning given in section 800.208 of title 31,
Code of Federal Regulations (as in effect on
the date of enactment of the No Official
Giveaways Of Taxpayers' Income to Oppressive
Nations Act).
``(ii) Foreign adversary.--The term
`foreign adversary' has the meaning given the
term `covered nation' in section 4872(d)(2) of
title 10, United States Code, except that such
term shall also include--
``(I) the Republic of Cuba, and
``(II) the Boliverian Republic of
Venezuela during any period of time
during which Nicholas Maduro is
President of the Republic.
``(2) Administration.--The Secretary may issue such
guidance as is necessary to carry out the purposes of this
section, including establishment of rules for--
``(A) implementation of paragraph (1)(C)(i) for
determination of whether the percentage requirements
with respect to outstanding equity interests have been
satisfied in the case of an entity for which the stock
of such entity is traded on an established securities
market in the United States or any foreign country, and
``(B) preventing entities from evading,
circumventing, or abusing the application of the
requirements under this section.''.
(b) Clerical Amendment.--The table of sections for chapter 77 of
such Code is amended by adding at the end the following new item:
``Sec. 7531. Denial of green energy tax benefits to companies
associated with foreign adversaries.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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