HONOR Act
Sponsored By: Senator Cortez Masto, Catherine [D-NV]
Passed Senate
Summary
Denies foreign tax credits for taxes paid or accrued to the Russian Federation during a defined suspension period. The bill would tie that denial to a specific window tied to U.S. trade relations and change how U.S. taxpayers treat Russian taxes on their returns.
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- U.S. companies and other taxpayers with Russian-source income would be unable to claim a foreign tax credit for taxes paid or accrued to Russia during the covered period. They would generally be able to deduct those Russian taxes on U.S. returns instead of claiming a credit.
- Taxpayers that would normally rely on U.S. tax treaties cannot use those treaties to avoid the rule because the bill applies without regard to treaty obligations.
- The special rule starts 30 days after enactment and runs until U.S. duty rates on Russian products are restored as defined by the related trade-suspension law. The rule on deduction timing applies to taxes paid or accrued more than 90 days after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
No credit, but deduction for Russia taxes
If enacted, this would block the foreign tax credit for any taxes you pay to Russia during a set period. The period would start 30 days after enactment and would end when the U.S. resumes normal tariff rates on Russian goods under section 4(b) of the Suspending Normal Trade Relations with Russia and Belarus Act. For taxes you pay or accrue after 90 days from enactment, you would be able to deduct those Russian taxes even though the credit would be denied. These rules would apply even if a U.S. tax treaty would say otherwise.
Sponsors & CoSponsors
Sponsor
Cortez Masto, Catherine [D-NV]
NV • D
Cosponsors
Sen. Cornyn, John [R-TX]
TX • R
Sponsored 1/30/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov