1. Short title This Act may be cited as the Protecting American Advanced Manufacturing Act . 2. Prohibition on allowance of advanced manufacturing production credit for eligible components produced by companies associated with foreign adversaries (a) In general Section 45X of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e) Prohibition on allowance of credit for eligible components produced by companies associated with foreign adversaries (1) In general No credit shall be allowed under subsection (a) with respect to any eligible component which is produced by a disqualified entity. (2) Disqualified entity (A) In general For purposes of this subsection, the term disqualified entity means any entity described in subparagraphs (B) through (D). (B) Foreign adversary parties The entities described in this subparagraph consist of the following: (i) The government of a foreign adversary, any agency or government instrumentality of a foreign adversary, or any entity which is directly or indirectly owned, controlled, or directed by any such government, agency, or government instrumentality. (ii) Any entity organized under the laws of a foreign adversary (or any political subdivision thereof) or whose headquarters is located within a foreign adversary. (C) Owned, controlled, directed, or influenced by foreign adversary parties The entities described in this subparagraph consist of the following: (i) Any entity for which, on any date during the taxable year, not less than 10 percent of the outstanding equity interests (by value, voting, governance, board appointment, or similar rights or influence) are held directly or indirectly by, or on behalf of, 1 or more of the entities described in subparagraph (B), including through interests in co-investment vehicles, joint ventures, or similar arrangements. (ii) Any entity which is directly or indirectly controlled, directed, or materially influenced by any entity described in subparagraph (B). (iii) Any entity for which the