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139 STAT. 253 PUBLIC LAW 119–21—JULY 4, 2025 (b) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.—Section 45Y is amended— (1) in subsection (b)(1), by adding at the end the following new subparagraph: ‘‘(E) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES.—The term ‘qualified facility’ shall not include any facility for which construction begins after December 31, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).’’, and (2) in subsection (g), by adding at the end the following new paragraph: ‘‘(13) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.— ‘‘(A) IN GENERAL.—No credit shall be determined under subsection (a) for any taxable year if the taxpayer is— ‘‘(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ‘‘(ii) a foreign-influenced entity (as defined in sec- tion 7701(a)(51)(D), without regard to clause (i)(II) thereof). ‘‘(B) EFFECTIVE CONTROL.—In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such deter- mination relates to a qualified facility described in sub- section (b)(1).’’. (c) DEFINITIONS RELATING TO PROHIBITED FOREIGN ENTITIES.— Section 7701(a) is amended by adding at the end the following new paragraphs: ‘‘(51) PROHIBITED FOREIGN ENTITY.— ‘‘(A) IN GENERAL.— ‘‘(i) DEFINITION.—The term ‘prohibited foreign entity’ means a specified foreign entity or a foreign- influenced entity. ‘‘(ii) DETERMINATION.— ‘‘(I) IN GENERAL.—Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year. ‘‘(II) INITIAL TAXABLE YEAR.—For purposes of the first taxable year beginning after the date of enactment of this paragraph, the determination as to whether an entity is a specified foreign entity described in clauses (i) through (iv) of subpara- graph (B) shall be made as of the first day of such taxable year. ‘‘(B) SPECIFIED FOREIGN ENTITY.—For purposes of this paragraph, the term ‘specified foreign entity’ means— ‘‘(i) a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 15 U.S.C. 4651), ‘‘(ii) an entity identified as a Chinese military com- pany operating in the United States in accordance Determination. Applicability.