[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 327 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 327
To amend the Internal Revenue Code of 1986 to deny any foreign tax
credit or deduction with respect to taxes paid or accrued to the
Russian Federation.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 30, 2025
Ms. Cortez Masto (for herself and Mr. Cornyn) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to deny any foreign tax
credit or deduction with respect to taxes paid or accrued to the
Russian Federation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hindering Oppressive Nations from
Obtaining Revenue Act'' or ``HONOR Act''.
SEC. 2. DENIAL OF FOREIGN TAX CREDIT WITH RESPECT TO THE RUSSIAN
FEDERATION.
(a) In General.--Section 901(j)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Special rule for russia.--
``(i) In general.--This subsection shall
apply to the Russian Federation during the
period described in clause (ii).
``(ii) Period of application.--The period
described in this clause with respect to any
country is the period--
``(I) beginning on the date that is
30 days after the date of the enactment
of this subparagraph, and
``(II) ending on the date on which
the resumption of the application of
the rates of duty set forth in column 1
of the Harmonized Tariff Schedule of
the United States to products of that
country takes effect pursuant to
section 4(b) of the Suspending Normal
Trade Relations with Russia and Belarus
Act.''.
(b) Deduction Denied.--Section 901(j)(3) of such Code is amended by
adding at the end the following new sentence: ``The preceding sentence
shall not apply to any tax of any country to which paragraph (2)(C)
applies.''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Deduction limitation.--The amendment made by subsection
(b) shall apply to taxes paid or accrued (or deemed paid or
accrued under section 960 of the Internal Revenue Code of 1986)
after the date that is 90 days after the date of the enactment
of this Act.
(3) Nonapplication of treaty rules.--This section and the
amendments made by this section shall be applied without regard
to any treaty obligation of the United States.
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