119-s369

[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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