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HONOR Act

3/17/2026, 11:30 AM

Summary of Bill S 327

Bill 119 s 327, also known as the "Russian Foreign Tax Credit Denial Act," is a proposed piece of legislation that aims to make changes to the Internal Revenue Code of 1986. The main purpose of this bill is to prevent individuals or businesses from claiming a foreign tax credit or deduction for any taxes paid or accrued to the Russian Federation.

The bill specifically targets taxes paid to Russia, a country that has been a source of political tension and concern for the United States in recent years. By denying the ability to claim a tax credit or deduction for taxes paid to Russia, the bill seeks to discourage financial transactions and interactions with the Russian government.

If passed, this legislation would have significant implications for individuals and businesses that engage in economic activities with Russia. It would effectively increase the tax burden on those who have financial dealings with the Russian Federation, as they would no longer be able to offset their tax liability by claiming a credit or deduction for taxes paid to Russia. Overall, Bill 119 s 327 represents a targeted effort to restrict financial support for the Russian government through the tax system. It is likely to face debate and scrutiny in Congress, as lawmakers consider the potential economic and diplomatic consequences of such a measure.

Congressional Summary of S 327

Hindering Oppressive Nations from Obtaining Revenue Act or HONOR Act

This bill prohibits a taxpayer from claiming the foreign tax credit (FTC) or an itemized tax deduction 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) or an itemized tax deduction for such taxes, both subject to limitations.

However, under current law, a taxpayer may not claim the FTC (but may claim an itemized tax deduction) 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).

The bill also disallows an itemized tax deduction for taxes paid, accrued, or deemed to be paid to Russia (effective 90 days after the date of enactment).

Current Status of Bill S 327

Bill S 327 is currently in the status of Passed in Senate since March 10, 2026. Bill S 327 was introduced during Congress 119 and was introduced to the Senate on January 30, 2025.  Bill S 327's most recent activity was Held at the desk. as of March 16, 2026

Bipartisan Support of Bill S 327

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
1
Democrat Cosponsors
0
Republican Cosponsors
1
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 327

Primary Policy Focus

Taxation

Alternate Title(s) of Bill S 327

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.
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.

Comments

Sincere Pittman profile image

Sincere Pittman

809

1 month ago

This bill is bad for me and my family. How does this even help anyone?