NO GOTION Act

Bill Number

H.R. 524

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-01-16: Referred to the House Committee on Ways and Means.

Last Updated

2026-05-11T13:15:13Z

AI-Generated Summary

Purpose

The "No Official Giveaways Of Taxpayers' Income to Oppressive Nations Act" (NO GOTION Act), H.R. 524, aims to prevent U.S. taxpayers from subsidizing green energy projects through tax benefits if those projects involve companies with significant ties to countries considered adversaries to U.S. interests. It targets nations viewed as threats by restricting their access to incentives meant to promote clean energy development.

Key Provisions

• Denial of Tax Benefits: The bill adds a new section (7531) to the Internal Revenue Code (IRC), which denies specific green energy-related tax credits and deductions to "disqualified companies." These include credits for alternative fuel vehicles (Section 30C), renewable energy production (Sections 40, 45, 45Y, 45Z), carbon capture (Section 45Q), clean electricity (Sections 45U, 45V), advanced manufacturing (Sections 45X, 48C), energy-efficient buildings (Sections 179D, 48E), and fuel tax credits (Sections 6426 and 6427).
• Definition of Disqualified Company:
• Any entity formed or organized in, or controlled by, a "country of concern."
• Any entity controlled by such disqualified entities.
• "Countries of concern" are explicitly defined as the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, and the Democratic People's Republic of Korea (North Korea).
• "Control" is based on ownership rules similar to those for foreign investments (referencing IRC Sections 954 and 958), applying to both foreign and U.S.-based corporations, partnerships, trusts, and estates.
• Effective Date: Applies to taxable years beginning after the date the bill is enacted into law.

Significant Changes to Existing Law

• Introduces a new restriction in Chapter 77 of the IRC, which previously had no such blanket denial of green energy tax benefits based on foreign affiliations.
• Modifies how tax incentives under the Inflation Reduction Act and other laws are applied, effectively excluding entities with ties to the specified countries from claiming them, even if operating in the U.S.
• Adds a clerical update to the IRC's table of sections for easy reference.

Potential Impacts

• On Government Agencies: The Internal Revenue Service (IRS) will need to enforce new compliance checks for tax filers, potentially increasing administrative workload to verify ownership and control structures. This could lead to higher audit rates for green energy claimants.
• On Citizens and Businesses: U.S. companies or individuals investing in or owning green energy projects with foreign ties may lose tax savings, raising costs and possibly slowing domestic clean energy adoption. It could encourage reshoring of supply chains away from the targeted countries.
• On International Relations: Strengthens U.S. economic measures against China, Russia, Iran, and North Korea by limiting their indirect access to American subsidies, potentially escalating trade tensions or prompting retaliatory actions. It may also influence global green energy markets by redirecting investments to U.S.-allied nations.

Main Stakeholders Affected

• Green Energy Companies: U.S. and foreign firms in renewables, manufacturing, and clean tech, especially those with supply chains or ownership linked to the four countries, who may face denied tax breaks.
• U.S. Taxpayers and Investors: Individuals and businesses claiming green energy incentives could be indirectly impacted if partnerships involve disqualified entities.
• Governments of Targeted Countries: Entities in China, Russia, Iran, and North Korea, including state-owned enterprises, lose access to U.S. market benefits, affecting their economic strategies.
• U.S. Federal Government: Benefits from protecting tax expenditures (estimated at billions for green incentives) but may see reduced economic activity in affected sectors.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on established IRC definitions of "control" to avoid ambiguity, but could lead to litigation over ownership determinations, especially for complex multinational structures. It aligns with existing foreign investment restrictions (e.g., CFIUS reviews) without creating new enforcement bodies.
• Constitutional: No direct challenges anticipated, as it regulates taxation—a congressional power under Article I—but it may raise equal protection questions if applied unevenly to U.S. vs. foreign entities.
• Political: Reflects bipartisan concerns over national security and economic competition, particularly with China, amid broader U.S. efforts to decouple from adversarial supply chains. The bill's nickname and sponsor list signal a targeted critique of foreign influence in U.S. energy policy, potentially influencing future trade or sanctions legislation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moolenaar, John R. [R-MI-2]

Cosponsors (27)

Rep. LaHood, Darin [R-IL-16], Rep. Golden, Jared F. [D-ME-2], Rep. Bergman, Jack [R-MI-1], Rep. Huizenga, Bill [R-MI-4], Rep. Walberg, Tim [R-MI-5], Rep. Barrett, Tom [R-MI-7], Rep. James, John [R-MI-10], Rep. Bost, Mike [R-IL-12], Rep. Malliotakis, Nicole [R-NY-11], Rep. Tenney, Claudia [R-NY-24], Rep. Cline, Ben [R-VA-6], Rep. Kelly, Mike [R-PA-16], Rep. Rouzer, David [R-NC-7], Rep. Schweikert, David [R-AZ-1], Rep. Allen, Rick W. [R-GA-12], Rep. Newhouse, Dan [R-WA-4], Rep. Finstad, Brad [R-MN-1], Rep. Murphy, Gregory F. [R-NC-3], Rep. Dunn, Neal P. [R-FL-2], Rep. Gimenez, Carlos A. [R-FL-28], Rep. Ellzey, Jake [R-TX-6], Rep. Palmer, Gary J. [R-AL-6], Rep. McClain, Lisa C. [R-MI-9], Rep. Perez, Marie Gluesenkamp [D-WA-3], Rep. Lawler, Michael [R-NY-17], Rep. Stefanik, Elise M. [R-NY-21], Rep. Suozzi, Thomas R. [D-NY-3]

Recent Actions

• 2025-01-16: Referred to the House Committee on Ways and Means.
• 2025-01-16: Introduced in House
• 2025-01-16: Introduced in House

Bill Versions

• No Official Giveaways Of Taxpayers’ Income to Oppressive Nations Act — issued 2025-01-16 — PDF (3 pages)