I 

110TH CONGRESS 

1ST SESSION H. R. 1400 

To enhance United States diplomatic efforts with respect to Iran by imposing 

additional economic sanctions against Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2007 

Mr. LANTOS (for himself, Ms. ROS-LEHTINEN, Mr. ACKERMAN, Mr. PENCE, 

Mr. SHERMAN, Mr. ROYCE, Mr. BERMAN, and Mr. SMITH of New Jersey) 

introduced the following bill; which was referred to the Committee on 

Foreign Affairs, and in addition to the Committees on Ways and Means, 

Financial Services, Oversight and Government Reform, and the Judiciary, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To enhance United States diplomatic efforts with respect 

to Iran by imposing additional economic sanctions 

against Iran, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Iran Counter-Proliferation Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title and table of contents. 

Sec. 2. United States policy toward Iran. 

TITLE I—SUPPORT FOR DIPLOMATIC EFFORTS RELATING TO 

PREVENTING IRAN FROM ACQUIRING NUCLEAR WEAPONS 

Sec. 101. Support for international diplomatic efforts. 

Sec. 102. Peaceful efforts by the United States. 

TITLE II—ADDITIONAL BILATERAL SANCTIONS AGAINST IRAN 

Sec. 201. Application to subsidiaries. 

Sec. 202. Additional import sanctions against Iran. 

Sec. 203. Additional export sanctions against Iran. 

TITLE III—AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 

Sec. 301. Multilateral regime. 

Sec. 302. Mandatory sanctions. 

Sec. 303. United States efforts to prevent investment. 

Sec. 304. Clarification and expansion of definitions. 

Sec. 305. Removal of waiver authority. 

TITLE IV—ADDITIONAL MEASURES 

Sec. 401. Additions to terrorism and other lists. 

Sec. 402. Increased capacity for efforts to combat unlawful or terrorist financing. 

Sec. 403. Exchange programs with the people of Iran. 

Sec. 404. Reducing contributions to the World Bank. 

Sec. 405. Restrictions on nuclear cooperation with countries assisting the nuclear program of Iran. 

Sec. 406. Elimination of certain tax incentives for oil companies investing in 

Iran. 

TITLE V—MISCELLANEOUS PROVISIONS 

Sec. 501. Termination. 

1 SEC. 2. UNITED STATES POLICY TOWARD IRAN. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) The prospect of the Islamic Republic of 

4 Iran achieving nuclear arms represents a grave 

5 threat to the United States and its allies in the Mid6 dle East, Europe, and globally. 

7 (2) The nature of this threat is manifold, rang8 ing from the vastly enhanced political influence ex9 tremist Iran would wield in its region, including the 


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1 ability to intimidate its neighbors, to, at its most 

2 nightmarish, the prospect that Iran would attack its 

3 neighbors and others with nuclear arms. This con4 cern is illustrated by the statement of Hashemi 

5 Rafsanjani, former president of Iran and currently a 

6 prominent member of two of Iran’s most important 

7 decision-making bodies, of December 14, 2001, when 

8 he said that it ‘‘is not irrational to contemplate’’ the 

9 use of nuclear weapons. 

10 (3) The theological nature of the Iranian re11 gime creates a special urgency in addressing Iran’s 

12 efforts to acquire nuclear weapons. 

13 (4) Iranian regime leaders have persistently de14 nied Israel’s right to exist. Current President 

15 Mahmoud Ahmadinejad has called for Israel to be 

16 ‘‘wiped off the map’’. 

17 (5) The nature of the Iranian threat makes it 

18 critical that the United States and its allies do ev19 erything possible—diplomatically, politically, and 

20 economically—to prevent Iran from acquiring nu21 clear-arms capability and persuade the Iranian re22 gime to halt its quest for nuclear arms. 

23 (b) SENSE OF CONGRESS.—It is the sense of Con24 gress that— 


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1 (1) Iranian President Ahmadinejad’s persistent 

2 denials of the Holocaust and his repeated assertions 

3 that Israel should be ‘‘wiped off the map’’ may con4 stitute a violation of the Convention on the Preven5 tion and Punishment of the Crime of Genocide and 

6 should be brought before an appropriate inter7 national tribunal for the purpose of declaring Iran 

8 in breach of the Genocide Convention; 

9 (2) the United States should increase use of its 

10 important role in the international financial sector to 

11 isolate Iran; 

12 (3) Iran should be barred from entering the 

13 World Trade Organization (WTO) until all issues re14 lated to its nuclear program are resolved; 

15 (4) all future free trade agreements involving 

16 Iran should be conditioned on the requirement that 

17 the parties to such agreements pledge not to invest 

18 and not to allow companies based on its territory or 

19 controlled by its citizens to invest in Iran’s energy 

20 sector or otherwise to make significant investment in 

21 Iran; 

22 (5) United Nations Security Council Resolution 

23 1737 (December 23, 2006), which was passed unani24 mously and mandates an immediate and uncondi25 tional suspension of Iran’s nuclear enrichment proVerDate Aug 31 2005 17:58 Mar 10, 2007 Jkt 059196 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1400.IH H1400

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1 gram, represents a critical gain in the world-wide 

2 campaign to prevent Iran’s acquisition of nuclear 

3 arms and should be fully respected by all nations; 

4 (6) the United Nations Security Council should 

5 take further measures beyond Resolution 1737 to 

6 tighten sanctions on Iran, including preventing new 

7 investment in Iran’s energy sector, as long as Iran 

8 fails to comply with the international community’s 

9 demand to halt its nuclear enrichment campaign; 

10 (7) the United States should encourage foreign 

11 governments to direct state owned entities to cease 

12 all investment in Iran’s energy sector and all exports 

13 of refined petroleum products to Iran and to per14 suade, and, where possible, require private entities 

15 based in their territories to cease all investment in 

16 Iran’s energy sector and all exports of refined petro17 leum products to Iran; 

18 (8) moderate Arab states have a vital and per19 haps existential interest in preventing Iran from ac20 quiring nuclear arms, and therefore such states, par21 ticularly those with large oil deposits, should use 

22 their economic leverage to dissuade other nations, 

23 including the Russian Federation and the People’s 

24 Republic of China, from assisting Iran’s nuclear pro25 gram directly or indirectly and to persuade other naVerDate Aug 31 2005 17:58 Mar 10, 2007 Jkt 059196 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1400.IH H1400

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1 tions, including Russia and China, to be more forth2 coming in supporting United Nations Security Coun3 cil efforts to halt Iran’s nuclear program; 

4 (9) the United States should take all possible 

5 measures to discourage and, if possible, prevent for6 eign banks from providing export credits to foreign 

7 entities seeking to invest in the Iranian energy sec8 tor; 

9 (10) the United States should oppose any fur10 ther activity by the International Bank for Recon11 struction and Development with respect to Iran, or 

12 the adoption of a new Country Assistance Strategy 

13 for Iran, including by seeking the cooperation of 

14 other countries; 

15 (11) the United States should extend its pro16 gram of discouraging foreign banks from accepting 

17 Iranian state banks as clients; 

18 (12) the United States should prohibit all Ira19 nian state banks from using the United States bank20 ing system; 

21 (13) United States federal pension plans should 

22 divest themselves of all non-United States companies 

23 investing more than $20 million in Iran’s energy 

24 sector; 


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1 (14) State and local government pension plans 

2 should divest themselves of all non-United States 

3 companies investing more than $20 million in Iran’s 

4 energy sector; 

5 (15) the United States should designate the Is6 lamic Revolutionary Guards Corps, which purveys 

7 terrorism throughout the Middle East and plays an 

8 important role in the Iranian economy, as a foreign 

9 terrorist organization under section 219 of the Im10 migration and Nationality Act, place the Islamic 

11 Revolutionary Guards Corps on the list of specially 

12 designated global terrorists, and place the Islamic 

13 Revolutionary Guards Corps on the list of weapons 

14 of mass destruction proliferators and their sup15 porters; and 

16 (16) United States concerns regarding Iran are 

17 strictly the result of actions of the Government of 

18 Iran; and 

19 (17) the American people have feelings of 

20 friendship for the Iranian people, regret that devel21 opments of recent decades have created impediments 

22 to that friendship, and hold the Iranian people, their 

23 culture, and their ancient and rich history in the 

24 highest esteem. 


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1 TITLE I—SUPPORT FOR DIPLO2 MATIC EFFORTS RELATING 

3 TO PREVENTING IRAN FROM 

4 ACQUIRING NUCLEAR WEAP5 ONS 

6 SEC. 101. SUPPORT FOR INTERNATIONAL DIPLOMATIC EF7 FORTS. 

8 It is the sense of Congress that— 

9 (1) the United States should use diplomatic and 

10 economic means to resolve the Iranian nuclear prob11 lem; 

12 (2) the United States should continue to sup13 port efforts in the International Atomic Energy 

14 Agency and the United Nations Security Council to 

15 bring about an end to Iran’s uranium enrichment 

16 program and its nuclear weapons program; and 

17 (3)(A) United Nations Security Council Resolu18 tion 1737 was a useful first step toward pressing 

19 Iran to end its nuclear weapons program; and 

20 (B) in light of Iran’s continued defiance of the 

21 international community, the United Nations Secu22 rity Council should adopt additional measures 

23 against Iran, including measures to prohibit invest24 ments in Iran’s energy sector. 


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1 SEC. 102. PEACEFUL EFFORTS BY THE UNITED STATES. 

2 Nothing in this Act shall be construed as authorizing 

3 the use of force or the use of the United States Armed 

4 Forces against Iran. 

5 TITLE II—ADDITIONAL BILAT6 ERAL SANCTIONS AGAINST 

7 IRAN 

8 SEC. 201. APPLICATION TO SUBSIDIARIES. 

9 (a) IN GENERAL.—In any case in which an entity en10 gages in an act outside the United States which, if com11 mitted in the United States or by a United States person, 

12 would violate Executive Order No. 12959 of May 6, 1995, 

13 Executive Order No. 13059 of August 19, 1997, or any 

14 other prohibition on transactions with respect to Iran that 

15 is imposed under the International Emergency Economic 

16 Powers Act (50 U.S.C. 1701 et seq.) and if that entity 

17 was created or availed of for the purpose of engaging in 

18 such an act, the parent company of that entity shall be 

19 subject to the penalties for such violation to the same ex20 tent as if the parent company had engaged in that act. 

21 (b) DEFINITIONS.—In this section— 

22 (1) an entity is a ‘‘parent company’’ of another 

23 entity if it owns, directly or indirectly, more than 50 

24 percent of the equity interest in that other entity 

25 and is a United States person; and 


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1 (2) the term ‘‘entity’’ means a partnership, as2 sociation, trust, joint venture, corporation, or other 

3 organization. 

4 SEC. 202. ADDITIONAL IMPORT SANCTIONS AGAINST IRAN. 

5 Effective 120 days after the date of the enactment 

6 of this Act— 

7 (1) goods of Iranian origin that are otherwise 

8 authorized to be imported under section 560.534 of 

9 title 31, Code of Federal Regulations, as in effect on 

10 March 5, 2007, may not be imported into the United 

11 States; and 

12 (2) activities otherwise authorized by section 

13 560.535 of title 31, Code of Federal Regulations, as 

14 in effect on March 5, 2007, are no longer author15 ized. 

16 SEC. 203. ADDITIONAL EXPORT SANCTIONS AGAINST IRAN. 

17 Effective on the date of the enactment of this Act— 

18 (1) Licenses to export or reexport goods, serv19 ices, or technology relating to civil aviation that are 

20 otherwise authorized by section 560.528 of title 31, 

21 Code of Federal Regulations, as in effect on March 

22 5, 2007, may not be issued, and any such license 

23 issued before such date of enactment is no longer 

24 valid; and 


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1 (2) goods, services, or technology described in 

2 paragraph (1) may not be exported or reexported. 

3 TITLE III—AMENDMENTS TO 

4 THE IRAN SANCTIONS ACT OF 

5 1996 

6 SEC. 301. MULTILATERAL REGIME. 

7 Section 4(b) of the Iran Sanctions Act of 1996 (50 

8 U.S.C. 1701 note) is amended to read as follows: 

9 ‘‘(b) REPORTS TO CONGRESS.—Not later than 6 

10 months after the date of the enactment of the Iran 

11 Counter-Proliferation Act of 2007 and every six months 

12 thereafter, the President shall submit to the appropriate 

13 congressional committees a report regarding specific diplo14 matic efforts undertaken pursuant to subsection (a), the 

15 results of those efforts, and a description of proposed dip16 lomatic efforts pursuant to such subsection. Each report 

17 shall include— 

18 ‘‘(1) a list of the countries that have agreed to 

19 undertake measures to further the objectives of sec20 tion 3 with respect to Iran; 

21 ‘‘(2) a description of those measures, includ22 ing— 

23 ‘‘(A) government actions with respect to 

24 public or private entities (or their subsidiaries) 


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1 located in their territories, that are engaged in 

2 Iran; 

3 ‘‘(B) any decisions by the governments of 

4 these countries to rescind or continue the provi5 sion of credits, guarantees, or other govern6 mental assistance to these entities; and 

7 ‘‘(C) actions taken in international fora to 

8 further the objectives of section 3; 

9 ‘‘(3) a list of the countries that have not agreed 

10 to undertake measures to further the objectives of 

11 section 3 with respect to Iran, and the reasons 

12 therefor; and 

13 ‘‘(4) a description of any memorandums of un14 derstanding, political understandings, or inter15 national agreements to which the United States has 

16 acceded which affect implementation of this section 

17 or section 5(a).’’. 

18 SEC. 302. MANDATORY SANCTIONS. 

19 Section 5(a) of the Iran Sanctions Act of 1996 (50 

20 U.S.C. 1701 note) is amended by striking ‘‘2 or more of 

21 the sanctions described in paragraphs (1) through (6) of 

22 section 6’’ and inserting ‘‘the sanction described in para23 graph (5) of section 6 and, in addition, one or more of 

24 the sanctions described in paragraphs (1), (2), (3), (4), 

25 and (6) of such section’’. 


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1 SEC. 303. UNITED STATES EFFORTS TO PREVENT INVEST2 MENT. 

3 Section 5 of the Iran Sanctions Act of 1996 is 

4 amended by adding the following new subsection at the 

5 end: 

6 ‘‘(g) UNITED STATES EFFORTS TO ADDRESS

7 PLANNED INVESTMENT.— 

8 ‘‘(1) REPORTS ON INVESTMENT ACTIVITY.—Not 

9 later than January 30, 2008, and every 6 months 

10 thereafter, the President shall transmit to the Com11 mittee on Foreign Affairs of the House of Rep12 resentatives and the Committee on Foreign Rela13 tions of the Senate a report on investment and pre14 investment activity, by any person or entity, that 

15 could contribute to the enhancement of Iran’s ability 

16 to develop petroleum resources in Iran. For each 

17 such activity, the President shall provide a descrip18 tion of the activity, any information regarding when 

19 actual investment may commence, and what steps 

20 the United States has taken to respond to such ac21 tivity. 

22 ‘‘(2) DEFINITION.—In this subsection— 

23 ‘‘(A) the term ‘investment’ includes the ex24 tension by a financial institution of credit or 

25 other financing to a person for that person’s in26 vestment; and 


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1 ‘‘(B) the term ‘pre-investment activity’ 

2 means any activity indicating an intent to make 

3 an investment, including a memorandum of un4 derstanding among parties indicating such an 

5 intent.’’ 

6 SEC. 304. CLARIFICATION AND EXPANSION OF DEFINI7 TIONS. 

8 (a) PERSON.—Section 14(13)(B) of the Iran Sanc9 tions Act of 1996 (50 U.S.C. 1701 note) is amended— 

10 (1) by inserting after ‘‘trust,’’ the following: ‘‘fi11 nancial institution, insurer, underwriter, guarantor, 

12 any other business organization, including any for13 eign subsidiaries of the foregoing,’’; and 

14 (2) by inserting before the semicolon the fol15 lowing: ‘‘, such as an export credit agency’’. 

16 (b) PETROLEUM RESOURCES.—Section 14(14) of the 

17 Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is 

18 amended by inserting after ‘‘petroleum’’ the second place 

19 it appears, the following: ‘‘, petroleum by-products, lique20 fied natural gas, the sale of oil or liquefied natural gas 

21 tankers,’’. 

22 SEC. 305. REMOVAL OF WAIVER AUTHORITY. 

23 (a) SIX-MONTH WAIVER AUTHORITY.—Section 4 of 

24 the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) 

25 is amended— 


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1 (1) in subsection (d)(1), by striking ‘‘except 

2 those with respect to which the President has exer3 cised the waiver authority under subsection (c)’’; 

4 (2) by striking subsection (c); and 

5 (3) by redesignating subsections (d), (e), and 

6 (f) as subsections (c), (d), and (e), respectively. 

7 (b) GENERAL WAIVER AUTHORITY.—Section 9 of the 

8 Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is 

9 amended by striking subsection (c). 

10 (c) CONSTRUCTION.—The amendments made by this 

11 section shall not be construed to affect any exercise of the 

12 authority of section 4(c) or section 9(c) of the Iran Sanc13 tions Act of 1996 as in effect on the day before the date 

14 of the enactment of this Act. 

15 TITLE IV—ADDITIONAL 

16 MEASURES 

17 SEC. 401. ADDITIONS TO TERRORISM AND OTHER LISTS. 

18 (a) DETERMINATIONS AND REPORT.—Not later than 

19 120 days after the date of the enactment of this Act, the 

20 President shall— 

21 (1) determine whether the Islamic Revolu22 tionary Guards Corps should be— 

23 (A) designated as a foreign terrorist orga24 nization under section 219 of the Immigration 

25 and Nationality Act (8 U.S.C. 1189); 


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1 (B) placed on the list of specially des2 ignated global terrorists; and 

3 (C) placed on the list of weapons of mass 

4 destruction proliferators and their supporters; 

5 and 

6 (2) report the determinations under paragraph 

7 (1) to the Committee on Foreign Affairs of the 

8 House of Representatives and the Committee on 

9 Foreign Relations of the Senate, including, if the 

10 President determines that such Corps should not be 

11 so designated or placed on either such list, the jus12 tification for the President’s determination. 

13 (b) DEFINITIONS.—In this section— 

14 (1) the term ‘‘specially designated global ter15 rorist’’ means any person included on the Annex to 

16 Executive Order 13224, of September 23, 2001, and 

17 any other person identified under section 1 of that 

18 Executive order whose property and interests in 

19 property are blocked by that section; and 

20 (2) the term ‘‘weapons of mass destruction 

21 proliferators and their supporters’’ means any per22 son included on the Annex to Executive Order 

23 13382, of June 28, 2005, and any other person 

24 identified under section 1 of that Executive order 


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1 whose property and interests in property are blocked 

2 by that section. 

3 SEC. 402. INCREASED CAPACITY FOR EFFORTS TO COMBAT 

4 UNLAWFUL OR TERRORIST FINANCING. 

5 (a) FINDINGS.—The work of the Office of Terrorism 

6 and Financial Intelligence of the Department of Treasury, 

7 which includes the Office of Foreign Assets Control and 

8 the Financial Crimes Enforcement Center, is critical to 

9 ensuring that the international financial system is not 

10 used for purposes of supporting terrorism and developing 

11 weapons of mass destruction. 

12 (b) AUTHORIZATION.—There is authorized for the 

13 Secretary of the Treasury $59,466,000 for fiscal year 

14 2008 and such sums as may be necessary for each of the 

15 fiscal years 2009 and 2010 for the Office of Terrorism 

16 and Financial Intelligence. 

17 (c) AUTHORIZATION AMENDMENT.—Section 

18 310(d)(1) of title 31, United States Code, is amended by 

19 striking ‘‘such sums as may be necessary for fiscal years 

20 2002, 2003, 2004, and 2005’’ and inserting ‘‘$85,844,000 

21 for fiscal year 2008 and such sums as may be necessary 

22 for each of the fiscal years 2009 and 2010’’. 


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1 SEC. 403. EXCHANGE PROGRAMS WITH THE PEOPLE OF 

2 IRAN. 

3 (a) SENSE OF CONGRESS.—It is the sense of Con4 gress that the United States should seek to enhance its 

5 friendship with the people of Iran, particularly by identi6 fying young people of Iran to come to the United States 

7 under United States exchange programs. 

8 (b) EXCHANGE PROGRAMS AUTHORIZED.—The 

9 President is authorized to carry out exchange programs 

10 with the people of Iran, particularly the young people of 

11 Iran. Such programs shall be carried out to the extent 

12 practicable in a manner consistent with the eligibility for 

13 assistance requirements specified in section 302(b) of the 

14 Iran Freedom Support Act (Public Law 109–293). 

15 (c) AUTHORIZATION.—Of the amounts available for 

16 ‘‘Educational and Cultural Exchanges’’, there is author17 ized to be appropriated to the President to carry out this 

18 section $10,000,000 for fiscal year 2008. 

19 SEC. 404. REDUCING CONTRIBUTIONS TO THE WORLD 

20 BANK. 

21 The President of the United States shall reduce the 

22 total amount otherwise payable on behalf of the United 

23 States to the International Bank for Reconstruction and 

24 Development for each fiscal year by the percentage rep25 resented by— 


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1 (1) the total of the amounts provided by the 

2 Bank to entities in Iran, or for projects and activi3 ties in Iran, in the then preceding fiscal year; di4 vided by 

5 (2) the total of the amounts provided by the 

6 Bank to all entities, or for all projects and activities, 

7 in the then preceding fiscal year. 

8 SEC. 405. RESTRICTIONS ON NUCLEAR COOPERATION WITH 

9 COUNTRIES ASSISTING THE NUCLEAR PRO10 GRAM OF IRAN. 

11 (a) IN GENERAL.—Notwithstanding any other provi12 sion of law or any international agreement, no agreement 

13 for cooperation between the United States and the govern14 ment of any country that is assisting the nuclear program 

15 of Iran or transferring advanced conventional weapons or 

16 missiles to Iran may be submitted to the President or to 

17 Congress pursuant to section 123 of the Atomic Energy 

18 Act of 1954 (42 U.S.C. 2153), no such agreement may 

19 enter into force with such country, no license may be 

20 issued for export directly or indirectly to such country of 

21 any nuclear material, facilities, components, or other 

22 goods, services, or technology that would be subject to 

23 such agreement, and no approval may be given for the 

24 transfer or retransfer directly or indirectly to such country 

25 of any nuclear material, facilities, components, or other 


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1 goods, services, or technology that would be subject to 

2 such agreement, until the President determines and re3 ports to the Committee on Foreign Relations of the Senate 

4 and the Committee on International Relations of the 

5 House of Representatives that— 

6 (1) Iran has ceased its efforts to design, de7 velop, or acquire a nuclear explosive device or related 

8 materials or technology; or 

9 (2) the government of the country that is as10 sisting the nuclear program of Iran or transferring 

11 advanced conventional weapons or missiles to Iran— 

12 (A) has suspended all nuclear assistance to 

13 Iran and all transfers of advanced conventional 

14 weapons and missiles to Iran; and 

15 (B) is committed to maintaining that sus16 pension until Iran has implemented measures 

17 that would permit the President to make the 

18 determination described in paragraph (1). 

19 (b) CONSTRUCTION.—The restrictions in subsection 

20 (a)— 

21 (1) shall apply in addition to all other applica22 ble procedures, requirements, and restrictions con23 tained in the Atomic Energy Act of 1954 and other 

24 laws; and 


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1 (2) shall not be construed as affecting the valid2 ity of agreements for cooperation that are in effect 

3 on the date of the enactment of this Act. 

4 (c) DEFINITIONS.—In this section: 

5 (1) AGREEMENT FOR COOPERATION.—The term 

6 ‘‘agreement for cooperation’’ has the meaning given 

7 that term in section 11 b. of the Atomic Energy Act 

8 of 1954 (42 U.S.C. 2014(b)). 

9 (2) ASSISTING THE NUCLEAR PROGRAM OF

10 IRAN.—The term ‘‘assisting the nuclear program of 

11 Iran’’ means the intentional transfer to Iran by a 

12 government, or by a person subject to the jurisdic13 tion of a government with the knowledge and acqui14 escence of that government, of goods, services, or 

15 technology listed on the Nuclear Suppliers Group 

16 Guidelines for the Export of Nuclear Material, 

17 Equipment and Technology (published by the Inter18 national Atomic Energy Agency as Information Cir19 cular INFCIRC/254/Rev. 3/Part 1, and subsequent 

20 revisions) or Guidelines for Transfers of Nuclear-Re21 lated Dual-Use Equipment, Material, and Related 

22 Technology (published by the International Atomic 

23 Energy Agency as Information Circular INFCIR/ 

24 254/Rev. 3/Part 2, and subsequent revisions). 


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1 (3) COUNTRY THAT IS ASSISTING THE NU2 CLEAR PROGRAM OF IRAN OR TRANSFERRING AD3 VANCED CONVENTIONAL WEAPONS OR MISSILES TO

4 IRAN.—The term ‘‘country that is assisting the nu5 clear program of Iran or transferring advanced con6 ventional weapons or missiles to Iran’’ means— 

7 (A) Russia; and 

8 (B) any other country determined by the 

9 President to be assisting the nuclear program 

10 of Iran or transferring advanced conventional 

11 weapons or missiles to Iran. 

12 (4) TRANSFERRING ADVANCED CONVENTIONAL

13 WEAPONS OR MISSILES TO IRAN.—The term ‘‘trans14 ferring advanced conventional weapons or missiles to 

15 Iran’’ means the intentional transfer to Iran by a 

16 government, or by a person subject to the jurisdic17 tion of a government with the knowledge and acqui18 escence of that government, of goods, services, or 

19 technology listed on— 

20 (A) the Wassenaar Arrangement list of 

21 Dual Use Goods and Technologies and Muni22 tions list of July 12, 1996, and subsequent revi23 sions; or 


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1 (B) the Missile Technology Control Regime 

2 Equipment and Technology Annex of June 11, 

3 1996, and subsequent revisions. 

4 SEC. 406. ELIMINATION OF CERTAIN TAX INCENTIVES FOR 

5 OIL COMPANIES INVESTING IN IRAN. 

6 (a) IN GENERAL.—Subsection (h) of section 167 of 

7 the Internal Revenue Code of 1986 (relating to amortiza8 tion of geological and geophysical expenditures) is amend9 ed by adding at the end the following new paragraph: 

10 ‘‘(6) DENIAL WHEN IRAN SANCTIONS IN EF11 FECT.— 

12 ‘‘(A) IN GENERAL.—If sanctions are im13 posed under section 5(a) of the Iran Sanctions 

14 Act of 1996 (relating to sanctions with respect 

15 to the development of petroleum resources of 

16 Iran) on any member of an expanded affiliated 

17 group the common parent of which is a foreign 

18 corporation, paragraph (1) shall not apply to 

19 any expense paid or incurred by any such mem20 ber in any period during which the sanctions 

21 are in effect. 

22 ‘‘(B) EXPANDED AFFILIATED GROUP.— 

23 For purposes of subparagraph (A), the term 

24 ‘expanded affiliated group’ means an affiliated 


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1 group as defined in section 1504(a), deter2 mined— 

3 ‘‘(i) by substituting ‘more than 50 

4 percent’ for ‘at least 80 percent’ each place 

5 it appears, and 

6 ‘‘(ii) without regard to paragraphs 

7 (2), (3), and (4) of section 1504(b).’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 subsection (a) shall apply to expense paid or incurred on 

10 or after January 1, 2007. 

11 TITLE V—MISCELLANEOUS 

12 PROVISIONS 

13 SEC. 501. TERMINATION. 

14 (a) TERMINATION.—The restrictions provided in sec15 tions 203, 404, and 405 shall no longer have force or ef16 fect with respect to Iran if the President determines and 

17 certifies to the appropriate congressional committees that 

18 Iran— 

19 (1) has ceased its efforts to design, develop, 

20 manufacture, or acquire— 

21 (A) a nuclear explosive device or related 

22 materials and technology; 

23 (B) chemical and biological weapons; and 

24 (C) ballistic missiles and ballistic missile 

25 launch technology; 


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25 

•HR 1400 IH

1 (2) has been removed from the list of countries 

2 the governments of which have been determined, for 

3 purposes of section 6(j) of the Export Administra4 tion Act of 1979 (50 U.S.C. 2405(j)) to have repeat5 edly provided support for acts of international ter6 rorism; and 

7 (3) poses no significant threat to United States 

8 national security, interests, or allies. 

9 (b) DEFINITION.—In subsection (a), the term ‘‘ap10 propriate congressional committees’’ means the Com11 mittee on Foreign Affairs of the House of Representatives 

12 and the Committee on Foreign Relations of the Senate. 

Æ 


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