HONOR Act

Sponsor: Catherine Cortez Masto (Democratic-NV)January 30, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Held at the desk.

Blocks U.S. taxpayers from getting tax breaks on income taxes paid to Russia.

This bill would stop U.S. taxpayers from reducing their American tax bill for income taxes they pay to Russia. Currently, businesses and individuals can claim these tax breaks. If passed, this would make them pay the full U.S. tax amount on that income, overriding existing tax treaties.

What Would Change

Currently, U.S. taxpayers can generally claim a foreign tax credit or deduction for income taxes paid to foreign countries, including Russia, often under treaty rules. If this bill passes, U.S. taxpayers would no longer be able to use these tax breaks for taxes paid to Russia. This would mean they pay the full U.S. tax amount on that income, overriding any existing treaty obligations.

Key Provisions

Blocks U.S. taxpayers from claiming a foreign tax credit for income taxes paid to Russia.
Ends the ability for U.S. taxpayers to deduct income taxes paid to Russia from their U.S. taxable income.
Overrides any existing tax treaties between the U.S. and Russia regarding these tax breaks.
Starts the denial of foreign tax credits 30 days after the bill becomes law.
Begins the denial of tax deductions 90 days after the bill becomes law.
Sets the end of these denials to be when normal trade relations with Russia resume.

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S 327 · 119th Congress · January 30, 2025 · AI Summary by gemini-2.5-flash · 9/10

HONOR Act

What Would Change

Key Provisions

Lobbying Activity