(1) For more than 20 years, Iran has pursued 
a secret nuclear program that is intended to produce 
a nuclear weapons capability for Iran. 
(2) The Government of Iran has consistently 
misled the United Nations, the International Atomic 
Energy Agency, and the United States as to the ob-
jectives and scope of its nuclear activities. 
(3) Iran has refused to comply with United Na-
tions Security Council Resolution 1737, adopted on 
December 23, 2006, which called for the suspension 
of all enrichment-related and reprocessing activities 
and is advancing work at its largest nuclear facility. 
(4) The International Atomic Energy Agency is 
unable to verify the absence of undeclared nuclear 
material and activities in Iran and its Director-Gen-
eral has stated that Iran could be 6 months to a 
year away from acquiring the material necessary to 
make a nuclear weapon. 
(5) An Iranian nuclear weapons capability poses 
a grave threat to the security of the United States 
and its allies around the world. 
(6) It is in the national security interests of the 
United States to prevent Iran from acquiring a nu-
clear weapons capability. 
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(7) The United States should use all political, 
economic, and diplomatic tools at its disposal to pre-
vent Iran from acquiring a nuclear weapons capa-
bility. 
(8) Nothing in this Act should be construed as 
giving the President the authority to use military 
force against Iran. 
SEC. 3. SENSE OF CONGRESS. 
The following is the sense of Congress: 
(1) The United States should pursue vigorously 
all measures in the international financial sector to 
restrict Iran’s ability to conduct international finan-
cial transactions, including prohibiting banks in the 
United States from handling indirect transactions 
with Iran’s state-owned banks and prohibiting finan-
cial institutions that operate in United States cur-
rency from engaging in dollar transactions with Ira-
nian institutions. 
(2) The United States Trade Representative or 
any other Federal official should not take any action 
that would extend preferential trade treatment to, or 
lead to the accession to the World Trade Organiza-
tion of, any country that is determined by the Sec-
retary of State to offer government-backed export 
credit guarantees to companies that invest in Iran or 
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any country in which the government owns or par-
tially owns an entity that invests in Iran. 
(3) Iran should comply fully with its obligations 
under United Nations Security Council Resolution 
1737, and any subsequent United Nations resolu-
tions related to Iran’s nuclear program, and in par-
ticular the requirement to suspend without delay all 
enrichment-related and reprocessing activities, in-
cluding research and development, and all work on 
all heavy water-related nuclear activities, including 
research and development. 
(4) The United Nations Security Council should 
take further measures beyond Resolution 1737 to 
tighten sanctions on Iran, including preventing new 
investment in Iran’s energy sector, as long as Iran 
fails to comply with the international community’s 
demand to halt its nuclear enrichment campaign. 
(5) The United States should encourage foreign 
governments to direct state-owned entities to cease 
all investment in Iran’s energy sector and all im-
ports to and exports from Iran of refined petroleum 
products and to persuade, and, where possible, re-
quire private entities based in their territories to 
cease all investment in Iran’s energy sector and all 
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imports to and exports from Iran of refined petro-
leum products. 
(6) Administrators of Federal and State pen-
sion plans should divest all assets or holdings from 
foreign companies and entities that have invested or 
invest in the future in Iran’s energy sector. 
(7) Iranian state-owned banks should not be 
permitted to use the banking system of the United 
States. 
(8) The Secretary of State should designate the 
Iranian Revolutionary Guards as a Foreign Terrorist 
Organization under section 219 of the Immigration 
and Nationality Act (8 U.S.C. 1189) and the Sec-
retary of the Treasury should place the Iranian Rev-
olutionary Guards on the list of Specially Designated 
Global Terrorists under Executive Order 13224 (66 
Fed. Reg. 186; relating to blocking property and 
prohibiting transactions with persons who commit, 
threaten to commit, or support terrorism). 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ has the meaning given that term in section 
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14(2) of the Iran Sanctions Act of 1996 (Public 
Law 104–172; 50 U.S.C. 1701 note). 
(2) INVESTMENT.—The term ‘‘investment’’ has 
the meaning given that term in section 14(9) of the 
Iran Sanctions Act of 1996 (Public Law 104–172; 
50 U.S.C. 1701 note). 
(3) IRANIAN
DIPLOMATS
AND
REPRESENTA-
TIVES OF OTHER GOVERNMENT AND MILITARY OR 
QUASI-GOVERNMENTAL
INSTITUTIONS
OF
IRAN.— 
The term ‘‘Iranian diplomats and representatives of 
other government and military or quasi-govern-
mental institutions of Iran’’ has the meaning given 
that term in section 14(11) of the Iran Sanctions 
Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 
note). 
(4) FAMILY MEMBER.—The term ‘‘family mem-
ber’’ means, with respect to an individual, the 
spouse, children, grandchildren, or parents of the in-
dividual. 
SEC. 5. CLARIFICATION AND EXPANSION OF DEFINITIONS. 
(a) PERSON.—Section 14(13)(B) of the Iran Sanc-
tions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 
note) is amended— 
(1) by inserting ‘‘financial institution, insurer, 
underwriter, guarantor, and other business organiza-
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tion, including any foreign subsidiary, parent, or af-
filiate of the foregoing,’’ after ‘‘trust,’’; and 
(2) by inserting ‘‘, such as an export credit 
agency’’ before the semicolon. 
(b) PETROLEUM RESOURCES.—Section 14(14) of the 
Iran Sanctions Act of 1996 (Public Law 104–172; 50 
U.S.C. 1701 note) is amended by striking ‘‘petroleum and 
natural gas resources’’ and inserting ‘‘petroleum, petro-
leum by-products, liquefied natural gas, oil or liquefied 
natural gas, oil or liquefied natural gas tankers, and prod-
ucts used to construct or maintain pipelines used to trans-
port oil or liquefied natural gas’’. 
SEC. 6. ECONOMIC SANCTIONS RELATING TO IRAN. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, and in addition to any other sanction in effect, 
beginning on the date that is 15 days after the date of 
the enactment of this Act, the economic sanctions de-
scribed in subsection (b) shall apply with respect to Iran, 
unless the President makes a certification to Congress de-
scribed in subsection (c). 
(b) SANCTIONS.—The sanctions described in this 
subsection are the following: 
(1) PROHIBITION ON IMPORTS.—No article that 
is grown, produced, or manufactured in Iran may be 
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or nuclear reprocessing activities of Iran; 
or 
(ii) contributing to the ballistic missile 
programs of Iran. 
(4) FREEZING ASSETS.— 
(A) IN GENERAL.—At such time as the 
United States has access to the names of Ira-
nian diplomats and representatives of other 
government and military or quasi-governmental 
institutions of Iran, the President shall take 
such action as may be necessary to freeze im-
mediately the funds and other assets belonging 
to anyone so named, the family members of 
those so named, and any associates of those so 
named to whom assets or property of those so 
named were transferred on or after January 1, 
2007. The action described in the preceding 
sentence includes requiring any United States 
financial institution that holds funds and assets 
of a person so named to report promptly to the 
Office of Foreign Assets Control information 
regarding such funds and assets. 
(B) ASSET
REPORTING
REQUIREMENT.— 
Not later than 14 days after a decision is made 
to freeze the property or assets of any person 
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under this paragraph, the President shall report 
the name of such person to the appropriate con-
gressional committees. 
(5) 
UNITED
STATES
GOVERNMENT
CON-
TRACTS.—The United States Government may not 
procure, or enter into a contract for the procurement 
of, any goods or services from a person that meets 
the criteria for the imposition of sanctions under 
section 5(a) of the Iran Sanctions Act of 1996 (Pub-
lic Law 104–172; 50 U.S.C. 1701 note). 
(c) CERTIFICATION DESCRIBED.—The certification 
described in this subsection means a certification made by 
the President to Congress beginning on the date that is 
15 days after the date of the enactment of this Act that 
the President has determined that Iran has completely, 
verifiably, and irreversibly dismantled all nuclear enrich-
ment-related and reprocessing-related programs. 
(d) TERMINATION
OF SANCTIONS.—The sanctions 
described in subsection (b) shall remain in effect until 
such time as the President makes the certification to Con-
gress described in subsection (c). 
SEC. 7. LIABILITY OF PARENT COMPANIES FOR VIOLA-
TIONS OF SANCTIONS BY FOREIGN ENTITIES. 
(a) IN GENERAL.—In any case in which an entity en-
gages in an act outside the United States that, if com-
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mitted in the United States or by a United States person, 
would violate the provisions of Executive Order 12959 (60 
Fed. Reg. 89) or Executive Order 13059 (62 Fed. Reg. 
162), or any other prohibition on transactions with respect 
to Iran imposed under the authority of the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.), the parent company of the entity shall be subject 
to the penalties for the act to the same extent as if the 
parent company had engaged in the act. 
(b) APPLICABILITY.—Subsection (a) shall not apply 
to a parent company of an entity on which the President 
imposed a penalty for a violation described in subsection 
(a) that was in effect on the date of the enactment of this 
Act if the parent company divests or terminates its busi-
ness with such entity not later than 90 days after such 
date of enactment. 
(c) DEFINITIONS.—In this section: 
(1) ENTITY.—The term ‘‘entity’’ means a part-
nership, association, trust, joint venture, corpora-
tion, or other organization. 
(2) PARENT
COMPANY.—The term ‘‘parent 
company’’ means an entity that is a United States 
person and— 
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(A) the entity owns, directly or indirectly, 
more than 50 percent of the equity interest by 
vote or value in another entity; 
(B) board members or employees of the en-
tity hold a majority of board seats of another 
entity; or 
(C) the entity otherwise controls or is able 
to control the actions, policies, or personnel de-
cisions of another entity. 
(3) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a natural person who is a citizen of the 
United States or who owes permanent alle-
giance to the United States; and 
(B) an entity that is organized under the 
laws of the United States, any State or terri-
tory thereof, or the District of Columbia, if nat-
ural persons described in subparagraph (A) 
own, directly or indirectly, more than 50 per-
cent of the outstanding capital stock or other 
beneficial interest in such entity. 
SEC. 8. ELIMINATION OF CERTAIN TAX INCENTIVES FOR 
OIL COMPANIES INVESTING IN IRAN. 
(a) IN GENERAL.—Subsection (h) of section 167 of 
the Internal Revenue Code of 1986 (relating to amortiza-
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tion of geological and geophysical expenditures) is amend-
ed by adding at the end the following new paragraph: 
‘‘(6) DENIAL WHEN IRAN SANCTIONS IN EF-
FECT.— 
‘‘(A) IN GENERAL.—If sanctions are im-
posed under section 5(a) of the Iran Sanctions 
Act of 1996 or section 7 of the Iran Counter- 
Proliferation Act of 2007 (relating to sanctions 
with respect to the development of petroleum 
resources of Iran) on any member of an ex-
panded affiliated group the common parent of 
which is a foreign corporation, paragraph (1) 
shall not apply to any expense paid or incurred 
by any such member in any period during which 
the sanctions are in effect. 
‘‘(B) EXPANDED
AFFILIATED
GROUP.— 
For purposes of subparagraph (A), the term 
‘expanded affiliated group’ means an affiliated 
group as defined in section 1504(a), deter-
mined— 
‘‘(i) by substituting ‘more than 50 
percent’ for ‘at least 80 percent’ each place 
it appears, and 
‘‘(ii) without regard to paragraphs 
(2), (3), and (4) of section 1504(b).’’. 
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