H.R.524 - No Official Giveaways Of Taxpayers’ Income to Oppressive Nations Act; NO GOTION Act (119th Congress)
Summary
H.R.524, also known as the NO GOTION Act, aims to amend the Internal Revenue Code of 1986 to deny certain green energy tax benefits to companies connected to countries of concern. These countries include the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, and the Democratic People's Republic of Korea. The bill targets companies created, organized, or controlled by these nations.
The bill specifically amends Chapter 77 of the Internal Revenue Code by adding Section 7531, which lists specific sections of the code related to green energy tax benefits that would not apply to disqualified companies. The act is set to apply to taxable years beginning after the date of its enactment.
Expected Effects
The likely effect of this bill would be to reduce the availability of US green energy tax benefits for companies with significant connections to the specified countries of concern. This could potentially impact investment flows and the development of green energy projects involving these entities. It may also incentivize companies to restructure their operations to avoid being classified as a 'disqualified company'.
Potential Benefits
- Reduced financial support for entities connected to countries perceived as adversaries.
- Increased energy independence for the US by incentivizing domestic green energy production.
- Enhanced national security by limiting economic ties with potentially hostile nations.
- Protection of American taxpayer money by preventing its use to benefit foreign entities of concern.
- Potentially stimulate domestic green energy innovation and job creation.
Potential Disadvantages
- Potential for retaliatory measures from the targeted countries, impacting international trade and relations.
- Increased costs for green energy projects if companies from the targeted countries are excluded from the supply chain.
- Possible delays in the development and deployment of green energy technologies due to reduced investment and competition.
- Risk of defining 'control' too broadly, inadvertently affecting legitimate businesses with minor connections to these countries.
- May face challenges in enforcement and compliance, requiring significant resources to monitor corporate structures and ownership.
Constitutional Alignment
The bill appears to align with the US Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. By restricting tax benefits to certain companies, Congress is exercising its power to regulate commerce and control spending.
Furthermore, the bill does not appear to infringe upon any specific constitutional rights or freedoms. It does not target any specific group based on race, religion, or national origin, and it does not restrict freedom of speech or assembly. The bill's focus on national security and economic interests aligns with the government's responsibility to protect the country and its citizens.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).