Restrictions on carbon oxide sequestration credit

(a) Restrictions relating to prohibited foreign entities Section 45Q(f) is amended by adding at the end the following new paragraph: (10) Restrictions relating to prohibited foreign entities (A) In general No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). (B) Other prohibited foreign entities No credit determined under subsection (a) shall be allowed under section 38 for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D)).. (b) Repeal of transferability Section 6418(f)(1), as amended by section 112010, is amended— (1) in subparagraph (A), by striking clause (iii), and (2) in subparagraph (B)— (A) in the matter preceding clause (i), by striking clause (ii), (iii), or (v) and inserting clause (ii) or (v), and (B) in clause (ii), by striking (or, in the case and all that follows through at such facility). (c) Effective dates (1) Restrictions relating to prohibited foreign entities The amendments made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Repeal of transferability The amendments made by subsection (b) shall apply to carbon capture equipment the construction of which begins after the date that is 2 years after the date of enactment of this Act.