The NO GOTION Act would amend the Internal Revenue Code to deny a broad set of green energy tax benefits to “disqualified companies” that are connected to certain countries of concern. Specifically, it creates a new Sec. 7531 (Denial of green energy tax benefits to companies connected to countries of concern) in Chapter 77. A disqualified company includes entities created in, organized in, or controlled by China, Russia, Iran, or North Korea, and entities controlled by those entities. For these disqualified companies, the bill would block access to a wide array of green energy tax credits and deductions listed in the bill (e.g., sections 30C, 40, 40A, 40B, 45, 45Q, 45U, 45V, 45W, 45X, 45Y, 45Z, 48, 48C, 48E, 179D, and others). The measure would take effect for taxable years beginning after enactment. In short, the act aims to prevent certain green energy incentives from flowing to companies tied to specified concern countries.
Key Points
- 1Adds a new provision (Sec. 7531) that denies green energy tax benefits to “disqualified companies.”
- 2Defines “disqualified company” as an entity created or organized in, or controlled by, one or more countries of concern; countries of concern are China, Russia, Iran, and North Korea.
- 3Uses a broad control standard (based on 954(d)(3) and 958(a)(2)) to determine whether an entity is controlled by such countries or by other entities connected to them, applying this to both foreign and domestic entities.
- 4Denies a wide set of green energy tax benefits by stating the denial applies “without regard to” a long list of specific credits and deductions (including 30C, 40, 40A, 40B, 45, 45Q, 45U, 45V, 45W, 45X, 45Y, 45Z, 48, 48C, 48E, 179D, and several related sections 6426(c)/(d)/(e), 6427(e)).
- 5Provides a clerical amendment to add Sec. 7531 to the table of sections in Chapter 77.
- 6Effective for taxable years beginning after enactment.