II
119THCONGRESS
1
STSESSION 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
FEBRUARY3, 2025
Mr. S
COTTof 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘No Official Giveaways 4
Of Taxpayers’ Income to Oppressive Nations Act’’ or the 5
‘‘NO GOTION Act’’. 6
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SEC. 2. DENIAL OF GREEN ENERGY TAX BENEFITS TO COM-1
PANIES ASSOCIATED WITH FOREIGN ADVER-2
SARIES. 3
(a) I
NGENERAL.—Chapter 77 of the Internal Rev-4
enue Code of 1986 is amended by adding at the end the 5
following new section: 6
‘‘SEC. 7531. DENIAL OF GREEN ENERGY TAX BENEFITS TO 7
COMPANIES ASSOCIATED WITH FOREIGN AD-8
VERSARIES. 9
‘‘(a) I
NGENERAL.—In the case of any disqualified 10
company, this title shall be applied without regard to sec-11
tions 30C, 40, 40A, 40B, 45, 45Q, 45U, 45V, 45W, 45X, 12
45Y, 45Z, 48, 48C, 48E, 179D, 6426(c), 6426(d), 13
6426(e), and 6427(e). 14
‘‘(b) D
ISQUALIFIEDCOMPANY.— 15
‘‘(1) I
N GENERAL.— 16
‘‘(A) D
EFINITION.—For purposes of this 17
section, the term ‘disqualified company’ means 18
any entity described in subparagraphs (B) 19
through (D). 20
‘‘(B) F
OREIGN ADVERSARY PARTIES .—The 21
entities described in this subparagraph consist 22
of the following: 23
‘‘(i) The government of a foreign ad-24
versary, any agency or government instru-25
mentality of a foreign adversary, or any 26
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•S 369 IS
entity which is directly or indirectly owned, 1
controlled, or directed by any such govern-2
ment, agency, or government instrumen-3
tality. 4
‘‘(ii) Any entity organized under the 5
laws of a foreign adversary (or any polit-6
ical subdivision thereof) or whose head-7
quarters is located within a foreign adver-8
sary. 9
‘‘(C) O
WNED, CONTROLLED, DIRECTED, OR 10
INFLUENCED BY FOREIGN ADVERSARY PAR -11
TIES.—The entities described in this subpara-12
graph consist of the following: 13
‘‘(i) Any entity for which, on any date 14
during the taxable year, not less than 10 15
percent of the outstanding equity interests 16
(by value, voting, governance, board ap-17
pointment, or similar rights or influence) 18
are held directly or indirectly by, or on be-19
half of, 1 or more of the entities described 20
in subparagraph (B), including through in-21
terests in co-investment vehicles, joint ven-22
tures, or similar arrangements. 23
‘‘(ii) Any entity which is directly or 24
indirectly controlled, directed, or materially 25
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influenced by any entity described in sub-1
paragraph (B). 2
‘‘(iii) Any entity for which the actions, 3
management, ownership, or operations of 4
such entity are subject to the direct influ-5
ence of an entity described in subpara-6
graph (B). 7
‘‘(iv) Any entity for which an interest 8
in such entity is held by an entity de-9
scribed in subparagraph (B) (referred to in 10
this clause as the ‘beneficiary firm’) as a 11
derivative financial instrument or through 12
a contractual arrangement between the 13
beneficiary firm and such entity, including 14
any financial instrument or other contract 15
between the beneficiary firm and the entity 16
which seeks to replicate any financial re-17
turn with respect to such entity or interest 18
in such entity. 19
‘‘(D) D
EBT OR OTHER ARRANGEMENTS 20
WITH FOREIGN ADVERSARY PARTIES .— 21
‘‘(i) I
N GENERAL.—An entity is de-22
scribed in this subparagraph if, as a result 23
of any prohibited obligation or arrange-24
ment— 25
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‘‘(I) the actions, management, or 1
operations of such entity are subject 2
to the direct or indirect influence of 1 3
or more entities described in subpara-4
graph (B) or (C), or 5
‘‘(II) such entity provides a sub-6
stantial benefit to 1 or more entities 7
described in subparagraph (B) or (C). 8
‘‘(ii) P
ROHIBITED OBLIGATION OR AR -9
RANGEMENT.—For purposes of this sub-10
paragraph, the term ‘prohibited obligation 11
or arrangement’ means any— 12
‘‘(I) debt, 13
‘‘(II) lease or sublease arrange-14
ment, 15
‘‘(III) management or operating 16
arrangement, 17
‘‘(IV) contract manufacturing ar-18
rangement, 19
‘‘(V) license or sublicense agree-20
ment, or 21
‘‘(VI) financial derivative. 22
‘‘(iii) E
XCEPTION.— 23
‘‘(I) I
N GENERAL.—For purposes 24
of clause (i)(II), the purchase of 25
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equipment or manufacturing inputs in 1
an arm’s length transaction shall not, 2
in and of itself, be deemed to provide 3
a substantial benefit. 4
‘‘(II) A
RM’S LENGTH.—For pur-5
poses of this clause, the term ‘arm’s 6
length’ has the meaning given in sec-7
tion 1.482–1 of title 26, Code of Fed-8
eral Regulations. 9
‘‘(E) O
THER DEFINITIONS.—For purposes 10
of this paragraph— 11
‘‘(i) C
ONTROL.—The term ‘control’ 12
has the meaning given in section 800.208 13
of title 31, Code of Federal Regulations 14
(as in effect on the date of enactment of 15
the No Official Giveaways Of Taxpayers’ 16
Income to Oppressive Nations Act). 17
‘‘(ii) F
OREIGN ADVERSARY .—The 18
term ‘foreign adversary’ has the meaning 19
given the term ‘covered nation’ in section 20
4872(d)(2) of title 10, United States Code, 21
except that such term shall also include— 22
‘‘(I) the Republic of Cuba, and 23
‘‘(II) the Boliverian Republic of 24
Venezuela during any period of time 25
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during which Nicholas Maduro is 1
President of the Republic. 2
‘‘(2) A
DMINISTRATION.—The Secretary may 3
issue such guidance as is necessary to carry out the 4
purposes of this section, including establishment of 5
rules for— 6
‘‘(A) implementation of paragraph 7
(1)(C)(i) for determination of whether the per-8
centage requirements with respect to out-9
standing equity interests have been satisfied in 10
the case of an entity for which the stock of such 11
entity is traded on an established securities 12
market in the United States or any foreign 13
country, and 14
‘‘(B) preventing entities from evading, cir-15
cumventing, or abusing the application of the 16
requirements under this section.’’. 17
(b) C
LERICALAMENDMENT.—The table of sections 18
for chapter 77 of such Code is amended by adding at the 19
end the following new item: 20
‘‘Sec. 7531. Denial of green energy tax benefits to companies associated with
foreign adversaries.’’.
(c) EFFECTIVEDATE.—The amendments made by 21
this section shall apply to taxable years beginning after 22
the date of the enactment of this Act. 23
Æ
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