HONOR Act
Summary
The HONOR Act (Hindering Oppressive Nations from Obtaining Revenue Act) is a tax bill that passed the Senate on March 10, 2026, and is now being considered by the House. The bill would amend the Internal Revenue Code to deny foreign tax credits or deductions for any taxes paid or accrued to the Russian Federation.
For everyday citizens and businesses, this means that U.S. companies operating in or doing business with Russia would no longer be able to reduce their U.S. tax liability by claiming credits for Russian taxes they have paid. Normally, the U.S. tax code allows companies to claim credits for foreign taxes paid to avoid double taxation. This bill creates an exception specifically for Russia.
The practical effect would be to increase the tax burden on American companies with Russian operations or investments, making it more costly to do business with Russia. This is a targeted economic measure intended to limit financial flows to Russia. The bill has bipartisan support, with one Republican cosponsor, and currently has an estimated 41 percent chance of being enacted if it passes the House and receives presidential approval.