YourVoice.Now Summary
Corporate BenefitsTransparency & AccountabilityU.S. taxpayers could no longer subtract Russian taxes from their U.S. tax bill — mostly a business change.
Corporate Benefits
Right now a U.S. company or person who pays tax to Russia can subtract it from their U.S. tax bill. That subtraction would end, so the same income gets taxed in both places.
Transparency & Accountability
The change is not permanent. It switches off on its own once the United States goes back to normal trade tariff rates on Russian goods.
More about this bill
Almost no one would notice this at home. It aims at U.S. companies and people who still pay taxes to the Russian government. Today those taxpayers can subtract Russian taxes from their U.S. tax bill. That break would stop 30 days after the measure became law. It would return only when the United States restores normal trade tariff rates on Russian goods. The change would apply even where a tax treaty says otherwise.
Congressional Summary
Hindering Oppressive Nations from Obtaining Revenue Act or HONOR ActThis bill prohibits a taxpayer from claiming the foreign tax credit (FTC) for taxes paid, accrued, or deemed paid to Russia.Under current law, a taxpayer may claim the FTC for income, war profits, and excess profits taxes (or taxes imposed in lieu of these taxes) paid, accrued, or deemed paid to a foreign country (and certain U.S. possessions), subject to limitations.However, under current law, a taxpayer may not claim the FTC for taxes paid to a foreign country if (1) the United States does not recognize the country’s government, (2) the United States severs or does not conduct diplomatic relations with the country, or (3) the country is designated by the Department of State as supporting international terrorist acts. (Currently, the FTC is disallowed for taxes paid, accrued, or deemed paid to Iran, North Korea, Sudan, and Syria.)Under the bill, a taxpayer may not claim the FTC for taxes paid, accrued, or deemed paid to Russia beginning 30 days after the date of enactment and until normal U.S. trade relations with Russia are restored (pursuant to requirements established by the Suspending Normal Trade Relations with Russia and Belarus Act).
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2026-07-16
- Date Added
- 2026-08-20
- Source
- Congress.gov →
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