Bill > S327

This bill, known as the "Hindering Oppressive Nations from Obtaining Revenue Act" (HONOR Act), amends the Internal Revenue Code to prevent U.S. taxpayers from claiming foreign tax credits or deductions for taxes paid to the Russian Federation. Specifically, the bill adds a special provision to section 901(j) of the tax code that prohibits foreign tax credits for Russia starting 30 days after the bill's enactment and continuing until normal trade relations are restored. The amendment also prevents taxpayers from taking deductions for Russian taxes. The bill will take effect immediately upon enactment, with the deduction limitation applying to taxes paid or accrued 90 days after enactment. Importantly, the bill stipulates that these changes will be implemented regardless of any existing treaty obligations, effectively creating a targeted tax penalty against Russia, likely in response to its ongoing actions in Ukraine.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/327/all-info