HR524-119

What This Bill Does

The NO GOTION Act uses the Internal Revenue Code to screen clean-energy tax benefits for foreign-control risk. It bars a disqualified company from using a long list of credits, deductions, and payment provisions, including sections 30C, 40, 40A, 40B, 45, 45Q, 45U, 45V, 45W, 45X, 45Y, 45Z, 48, 48C, 48E, 179D, 6426, and 6427. A disqualified company is one created or organized in a country of concern, controlled by such a country, or controlled by an entity that is itself organized in or controlled by such a country. The covered countries are China, Russia, Iran, and North Korea by cross-reference to the CHIPS Act foreign-country-of-concern list. The rule applies to taxable years beginning after enactment, so Treasury and taxpayers would have to apply foreign-control screening before allowing the covered energy tax benefits.

Who Benefits and How

U.S.-controlled clean energy manufacturers benefit because competitors controlled by China, Russia, Iran, or North Korea lose access to covered energy tax credits and deductions. Federal taxpayers benefit because the bill prevents foreign-country-of-concern controlled companies from receiving subsidies through the covered tax provisions. National security policymakers benefit from a tax-code enforcement lever tied to the CHIPS Act foreign-country-of-concern framework. Domestic project developers benefit when foreign-controlled competitors face a narrower subsidy path for qualifying energy projects.

Who Bears the Burden and How

China-controlled green energy companies bear the direct burden because they cannot claim the listed energy tax credits, deductions, or payment provisions. Treasury Department tax administrators must screen ownership and control status across many energy tax provisions. IRS examiners must verify whether taxpayers are organized in, controlled by, or controlled through entities from countries of concern. Clean energy project sponsors using foreign-controlled partners may lose expected tax benefits or restructure ownership.

Key Provisions

• Blocks disqualified companies from using specified clean-energy credits, deductions, and payment provisions.
• Requires disqualified-company status for companies organized in or controlled by China, Russia, Iran, North Korea, or controlled entities.
• Limits eligibility beginning with taxable years after enactment.
• Requires Treasury and IRS ownership-control review before covered energy tax benefits are allowed.