House bill

Internal bill would deny foreign tax credits to those who pay taxes in Russia

A bipartisan group of lawmakers recently introduced a bill in the House that would deny foreign tax credits and other tax benefits to companies that pay taxes to Russia and Belarus.

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The Support for Ukraine through Our Tax Code Act (HR 7901) aims to empower companies, trusts, partnerships, estates and individuals who continue to do business in Russia and contribute to its war effort by paying taxes.

The bill was introduced by U.S. Representatives Brad Schneider (D-IL), Jared Golden (D-ME), Don Bacon (R-NE), Salud Carbajal (D-CA), Jim Baird (R-IN) and Adam Kinzinger (R-IL).

“Russia’s unprovoked war and indiscriminate attacks on civilians cannot and should not be supported by taxes paid by corporate America,” the lawmakers said in a joint statement. “With our bipartisan legislation, American companies are even more discouraged from operating in Russia. It’s common sense policy: if you choose to do business in Russia – and by extension pay taxes for its war machine – the American people should not help foot the bill.

The bill would add Russia and Belarus to the list of existing countries ineligible for the foreign tax credit, joining North Korea, Iran, Syria and Cuba.

Golden, Baird, Carbajal, Bacon and Kinzinger are all members of the For Country Caucus, a bipartisan group of military veterans committed to building the country, strengthening United States national security, and supporting American veterans and their families.

U.S. Sen. Ron Wyden (D-OR), chairman of the Senate Finance Committee, and Rob Portman (R-OH) introduced complementary legislation in the Senate last month.