HINDERING OPPRESSIVE NATIONS FROM OBTAINING REVENUE ACT

HINDERING OPPRESSIVE NATIONS FROM OBTAINING REVENUE ACT

Congressional Record, Volume 172 Issue 44 (Tuesday, March 10, 2026) [Congressional Record Volume 172, Number 44 (Tuesday, March 10, 2026)] [Senate] [Page S953] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] HINDERING OPPRESSIVE NATIONS FROM OBTAINING REVENUE ACT Ms. CORTEZ MASTO. Mr. President, notwithstanding rule XXII, I ask unanimous consent that the Committee on Finance be discharged from further consideration of and the Senate proceed to the immediate consideration of S. 327. The PRESIDING OFFICER. The clerk will report the bill by title. The legislative clerk read as follows: A bill (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. There being no objection, the committee was discharged, and the Senate proceeded to consider the bill. Ms. CORTEZ MASTO. Mr. President, I ask unanimous consent that the bill be considered read a third time and passed and that the motion to reconsider be considered made and laid upon the table. The PRESIDING OFFICER. Without objection, it is so ordered. The bill (S. 327) was ordered to be engrossed for a third reading, was read the third time, and passed, as follows: S. 327 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. Ms. CORTEZ MASTO. Mr. President, the bill that we just passed today through unanimous consent is a bipartisan bill to make sure that American families are not on the hook for taxes being paid to Vladimir Putin's war machine. Last week, we received disturbing reports that Russia is providing Iran with intelligence to target United States forces. They are passing along critical information, like the locations of our military assets, including warships and aircraft. That is just unacceptable--not just to me. Ask most Americans, and they will say the same thing: Putin is actively aiding our enemy. Our tax dollars shouldn't be supporting his efforts to harm American troops. That is why we passed the bill today. Let me talk a little bit more about it. Currently, U.S. law allows businesses that are paying taxes in foreign countries to claim a tax credit or a deduction in the United States so they don't get taxed twice. Normally, this makes sense. It promotes international investment and cooperation, and it simplifies our Tax Code. Importantly, this tax credit doesn't apply to hostile nations like North Korea and Iran that use these funds to support terrorism and harm our military. The bill I passed today, S. 327, the HONOR Act, would add Russia to that list alongside our other adversaries. It is just common sense that we should disincentivize funding our adversaries in Russia when they are helping Iran target United States servicemembers, several of whom have tragically lost their lives to this conflict already. Russia had been our enemy long before now, and Putin's illegal war in Ukraine made that even more apparent. That is why Senator John Cornyn and I introduced this bill over a year ago. Passing this bill is urgent now more than ever because we know Russia is acting against us by aiding Iran. Now, I want to make it clear: I don't agree with President Trump's war in Iran. This administration slashed Medicaid for millions of American families, then turned around and launched a multibillion- dollar war without congressional approval. It puts America last. But no matter what you think about this war, we cannot continue to allow Vladimir Putin's regime to financially benefit while they are attacking and killing our servicemembers. It is that simple. We passed the HONOR Act and have now adjusted it with the unanimous bipartisan support of the Senators in this Chamber. I look forward to this bill's passing out of the House as well. I yield the floor. I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The legislative clerk proceeded to call the roll. Mr. KENNEDY. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. ____________________

Referenced legislation: S327, S327