Congress blocks tax breaks for U.S. companies earning money in Russia
H.R. 9764 — HONOR Act · Filed by Brad Schneider (D-IL) · 1 cosponsor · Introduced Jul 16, 2026 · Referred to committee
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What it does
This bill blocks U.S. companies and individuals from claiming foreign tax credits for taxes paid to Russia. The ban lasts from 30 days after enactment until normal trade relations with Russia are restored under existing law. It overrides any U.S. treaty obligations that might otherwise allow such credits.
Why we flagged it
The bill's sole operative mechanism is a targeted tax penalty on U.S. taxpayers earning income in Russia, functioning as a financial sanction to reduce capital flows to Russia during an active conflict. It is a straightforward foreign-policy tool, not a tax-code amendment for revenue or structural reasons.
What the text implies
- The bill's termination date is pegged to restoration of normal trade relations with Russia under the Suspending Normal Trade Relations with Russia and Belarus Act — meaning the tax penalty automatically expires if Congress votes to normalize trade, creating a built-in sunset tied to geopolitical conditions rather than a fixed date.
- By denying the foreign tax credit (not by imposing a new tax), the bill increases effective U.S. tax rates on Russian-source income without formally raising rates, potentially affecting investment decisions and capital allocation in ways less visible than a direct tariff or sanction.
- The bill explicitly overrides treaty obligations, which may create diplomatic friction or invite reciprocal treaty violations by other nations, though the stated intent is to prioritize sanctions policy over treaty commitments.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
The bill imposes a financial cost on U.S. taxpayers with Russian-source income, but that cost serves a clear public-interest purpose: it is a targeted economic sanction against Russia during an active geopolitical conflict, designed to reduce capital flows to a hostile state. The burden falls on a narrow class (those with Russian business interests) and serves national security and foreign policy objectives aligned with broad public interest.
Who stands to gain
- U.S. Treasury (increased tax revenue from denied credits)
Named in the bill
Russian Federation, Internal Revenue Service, U.S. Treasury, Congress, Suspending Normal Trade Relations with Russia and Belarus Act
Where it stands
1 cosponsor: 1 Republicans.
- Jul 16, 2026 — Introduced · Congress.gov: “Introduced in House”
- Jul 16, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
3 lobbying clients named this bill on 3 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $30,000 in lobbying spend. A filing names 14 bills on average, so that figure is what each filing reported, not a share belonging to this bill.
More lobbying clients named this bill than 61% of bills with at least one filing.
Brad Schneider, the sponsor, reported $1,408,249 in PAC receipts in the 2026 cycle.
- Edward Jones Investments — $20,000 on 1 filing
- Empower Retirement LLC — $10,000 on 1 filing
- Transamerica Life Insurance Company — $0 on 1 filing
Lobbying Disclosure Act filings through Jul 17, 2026. A filing shows who paid to lobby on a bill it names, not what changed.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,245 characters) on Aug 12, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Jun 2026 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 17, 2026 · page rendered 2026-10-20.
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