S. 369

119 S369 IS: No Official Giveaways Of Taxpayers’ Income to Oppressive Nations Act
 U.S. Senate
 2025-02-03
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 369  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.
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  .
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:
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.