Sen. Rick Scott Leads Bill to Stop Communist China from Getting U.S. Tax Credits
February 3, 2025
WASHINGTON, D.C. – Today, Senator Rick Scott led his colleagues, Senators Jim Banks and Pete Ricketts, to introduce the No Official Giveaways Of Taxpayers’ Income to Oppressive Nations (NO GOTION) Act. The legislation would prohibit companies affiliated with the Chinese Communist Party (CCP) from qualifying for green energy production tax credits put in place by the Biden-era Inflation Reduction Act. Chairman John Moolenaar and Representatives Darin LaHood and Jared Golden are leading this bipartisan effort in the House of Representatives.
Senator Rick Scott said, “U.S. adversaries shouldn’t be allowed to benefit off American taxpayer dollars with incentives meant to build American businesses. Americans elected us to represent their best interests, and I’m proud to do that with our NO GOTION Act to crack down on companies owned by our adversaries attempting to take advantage of U.S. tax privileges.”
Senator Jim Banks said, “American taxpayers should not be forced to subsidize “green” tax credits for our adversaries, including the Chinese Communist Party. Why would we allow the hard-earned tax dollars of U.S. workers to be wasted lining the pockets of anti-American companies—all in the name of climate nonsense? That sort of racket is the definition of America Last. I’m proud to be an original cosponsor of this bill.”
Congressman John Moolenaar said, “The NO GOTION Act is a commonsense, bipartisan measure that prohibits our adversaries from benefitting from the tax dollars of hardworking American families, and right now there is a loophole that allows IRA tax credits to go to Chinese companies. This legislation closes that loophole and makes sure CCP-affiliated companies will not be able to receive tax credits. The United States is in competition with the CCP and under no circumstance should we be giving taxpayer money to Chinese companies.”
Congressman Darin LaHood said, “The Chinese Communist Party is working to replace the United States every day and as we continue to find ways to better protect U.S. businesses and workers from that effort, the least we can do in the short term is ensure we aren’t allowing CCP-affiliated competitors to benefit from our federal tax incentives. As a member of the House Ways and Means Committee and the Select Committee China, I will not allow hard-working American taxpayers to fund the CCP’s development of energy and critical technologies that will be used to harm the United States. 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. I look forward to working alongside President Trump and my colleagues in Congress to promote pro-growth tax policy that supports American businesses, protect our national security, and cement U.S. leadership on the world stage.”
The NO GOTION Act has been endorsed by Heritage Action, Americans for Prosperity, Concerned Veterans for America, The Coalition for a Prosperous America, Advancing American Freedom, and American Compass. See more on the endorsements of the NO GOTION Act below.
Ryan Walker, Heritage Action Executive Vice President, said, “There is no excuse for giving tax breaks to hostile foreign nations at the expense of American citizens. It’s high time for Congress to undo the economic harms of the Biden administration’s Inflation Reduction Act and prevent foreign adversaries from taking advantage of Americans’ tax dollars. The No Official Giveaways Of Taxpayers’ Income to Oppressive Nations Act is a long overdue solution that protects American energy innovation and returns fairness to our tax system.”
Brent Gardner, Chief Government Affairs Officer at Americans for Prosperity, said, “America thrives when we embrace free-market principles, not when the government picks winners and losers in the energy sector. The failed policies of the Biden Administration relied on green energy tax credits that distorted our economy and, in some cases, benefited companies tied to the Chinese Communist Party. It’s time to end these handouts that hurt American taxpayers and reward our adversaries. The NO GOTION Act ensures we stop cronyism and put the focus back on policies that strengthen our economy and national security through innovation and competition.”
Nate Anderson, Senior Advisor at Concerned Veterans for America, said, “U.S. energy abundance fuels our nation's prosperity and allows us to secure America's strategic interests. But cronyism in our energy sector, enabled by green energy tax credits, funnels taxpayer dollars to companies tied to strategic competitors like the Chinese Communist Party. The NO GOTION Act takes a stand against this cronyism, ensuring America’s resources serve our national interests, not those of foreign adversaries or politically connected elites.”
Zach Mottl, Chairman of the Coalition for a Prosperous America, said, "Taxpayer funds should never be used to support companies affiliated with the Chinese Communist Party or any of our adversaries. The NO GOTION Act is a vital, commonsense measure to protect American taxpayers and industries from exploitation. For too long, loopholes in federal law have allowed CCP-controlled companies to exploit U.S. incentives meant to grow our economy and create good-paying jobs. Closing these loopholes ensures taxpayer dollars are invested in strengthening America—not enriching our adversaries."
Paul Teller, Executive Vice President at Advancing American Freedom, said, “The NO GOTION Act represents a rare opportunity to safeguard our national interests, strengthen our economic resilience, and send a clear message that America will not tolerate CCP interference in our critical industries.”
Oren Cass, Founder and Chief Economist of American Compass, said, “The American tax code should advance the American national interest. Allowing Chinese companies to further entrench themselves into U.S supply chains on the American taxpayer's dime is the opposite of serving our national interest. This legislation helps advance a saner approach to tax policy that takes our competition with China seriously.”
BACKGROUND…
- The legislation comes as a response to Gotion, a CCP-affiliated company, claiming it was reviewing and assessing how it can utilize the green energy production tax credits. Gotion is currently planning to build factories in Green Charter Township, and Kankakee, Illinois. In June 2024, investigations led by House Select Committee on the CCP uncovered Gotion’s close ties to the CCP, including its reliance on forced labor in Xinjiang Province.
- In federal filings Gotion has admitted it is “wholly owned and controlled” by its China-based parent company, Gotion High-Tech, and it is subsidized by the Chinese government. According to Gotion High-Tech’s by-laws it is required to “carry out Party activities in accordance with the Constitution of the [Chinese Communist Party].”
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