U.S. Reps. John Moolenaar (R-MI) and Darin LaHood (R-IL) on Jan. 16 unveiled a bipartisan measure that would prohibit companies connected to certain countries of concern from qualifying for green energy production tax credits implemented under the Inflation Reduction Act.
Rep. Moolenaar sponsored the No Official Giveaways Of Taxpayers’ Income to Oppressive Nations (NO GOTION) Act, H.R. 524, alongside 22 original cosponsors, including lead cosponsor Rep. LaHood, as well as U.S. Reps. Bill Huizenga (R-MI), Mike Bost (R-IL), Mike Kelly (R-PA), Dan Newhouse (R-WA), and Jared Golden (D-ME).
If enacted, H.R. 524 specifically would prevent any company based in China, Russia, Iran, or North Korea, and the subsidiaries of those companies, from benefiting from the tax credits, according to a bill summary provided by the lawmakers.
“Right now there is a loophole that allows IRA tax credits to go to Chinese companies. This legislation closes that loophole and makes sure [Chinese Communist Party] CCP-affiliated companies will not be able to receive tax credits,” Rep. Moolenaar said. “The United States is in competition with the CCP and under no circumstance should we be giving taxpayer money to Chinese companies.”
The United States must work every day to find ways to better protect U.S. businesses and workers from CCP-affiliated competitors, added Rep. LaHood.
“The NO GOTION Act will ensure that companies with ties to the Chinese Communist Party, Russia, Iran, and North Korea cannot, in any way, benefit from the energy incentives in our tax code,” he said.
The lawmakers said that the bill comes as a response to China-based battery manufacturer Gotion High tech Co. Ltd. claiming it was reviewing and assessing how it could use the green energy production tax credits to build factories in Illinois.
In June 2024, investigations led by Rep. Moolenaar and the House Select Committee on the CCP uncovered Gotion’s ties to the Chinese government, which is subsidizing its operations.
Rep. Golden noted that America’s manufacturing credits are designed to strengthen the U.S. economy. “Closing a loophole that allows them to be used to benefit China, Russia, Iran, and North Korea is a goal that all of us should be able to share,” the congressman said.