HONOR Act
Sponsored By: Senator Catherine Cortez Masto
Passed Senate
Summary
Denies foreign tax credits for taxes paid to the Russian Federation during a defined period. The bill would block U.S. taxpayers from using Russian taxes to offset U.S. tax and ties the restriction to tariff actions while narrowing a related deduction rule.
Show full summary
- U.S. businesses and taxpayers with Russian-source income would be barred from claiming foreign tax credits for taxes paid to Russia during the period that begins 30 days after enactment. The bill also narrows the related deduction denial rule for those taxes, and that deduction limit applies to taxes paid or accrued after 90 days from enactment.
- Taxpayers who would rely on U.S. tax treaties to protect credits for Russian taxes lose that protection during the period because the rule applies without regard to treaty obligations. The period ends when tariff rates for Russian products resume under the Suspending Normal Trade Relations with Russia and Belarus Act.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Businesses and investors lose Russia tax credit
If enacted, you would not be able to claim a U.S. foreign tax credit for taxes you pay to Russia. The credit denial would start 30 days after enactment and would end when the U.S. resumes normal column 1 tariff rates on Russian goods under the cited law. These rules would apply even if a tax treaty would otherwise allow a credit. For Russian taxes you pay or accrue after 90 days from enactment, you would be allowed a U.S. deduction instead of a credit. From day 30 to day 90, neither a credit nor a deduction would be allowed. Many businesses and investors with Russian income would owe more U.S. tax.
Sponsors & CoSponsors
Sponsor
Catherine Cortez Masto
NV • D
Cosponsors
John Cornyn
TX • R
Sponsored 1/30/2025
Roll Call Votes
No roll call votes available for this bill.
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