HONOR Act

This bill proposes to amend the Internal Revenue Code of 1986 to deny foreign tax credits for any taxes paid or accrued to the Russian Federation. It specifically adds a new subparagraph to section 901(j)(2), making Russia subject to rules that prevent U.S. companies from claiming credits for taxes paid to certain foreign governments. The denial of these credits would begin 30 days after the bill's enactment and would continue until the United States restores normal trade relations with Russia, as outlined in the Suspending Normal Trade Relations with Russia and Belarus Act. This measure aims to reduce the financial benefits for U.S. companies operating in Russia, thereby limiting revenue streams to the Russian government. Importantly, the bill mandates that this denial be applied without regard to any existing treaty obligations of the United States, ensuring its immediate and full implementation.