“A bill to amend the Internal Revenue Code of 1986 to deny certain green energy tax benefits to companies associated with foreign adversaries.”
No CRS summary available for this bill.
This section establishes an exclusion from specified clean energy tax credits—sections 30C (alternative fuel vehicle refueling property), 40/40A/40B (biofuels), 45/45Q/45U/45V/45W/45X/45Y/45Z (renewable electricity, carbon sequestration, nuclear, hydrogen, clean fuel, and clean electricity production), 48/48C/48E (energy investment, advanced manufacturing, and clean electricity), 179D (energy-efficient buildings), and 6426(c)/(d)/(e) and 6427(e) (fuel credits)—for any disqualified company, effective for taxable years beginning after enactment. A disqualified company includes (1) foreign adversary governments, their entities, or entities owned/controlled by them or organized/headquartered in a foreign adversary (i.e., China, Russia, Iran, North Korea, Cuba, or Venezuela under President Maduro); (2) entities with 10% or more equity interests held by such parties or subject to their control/influence (including via derivatives or joint ventures); or (3) entities whose actions/operations are influenced by or provide substantial benefits to such parties through prohibited debt, leases, management contracts, or similar arrangements (except arm's-length purchases of equipment/inputs). (Thus, U.S. taxpayers cannot claim these credits for projects, facilities, or activities involving such companies.) The Secretary of the Treasury may issue guidance to implement and prevent circumvention of these rules.