background image
U.S. Representatives Introduce Legislation to Disallow FTCs and Other Tax Benefits for Companies Operating in Russia and Belarus — Orbitax Tax News & Alerts

On 1 June 2022, U.S. Representative Jared Golden (D-ME) announced the introduction of the "Support Ukraine Through Our Tax Code Act" in the House of Representatives, which would deny foreign tax credits and other tax benefits to companies that pay taxes to Russia and Belarus. The draft legislation is in line with companion legislation introduced in the Senate in May 2022 by Senators Ron Wyden (D-OR) and Rob Portman (R-OH).


For Country Caucus Members Introduce Bill to Exact Penalties on Businesses Still Operating in Russia

WASHINGTON – Today, Representatives Jared Golden (D-Maine), Don Bacon (R-Neb.), Salud Carbajal (D-Calif.), Jim Baird (R-Ind.), and Adam Kinzinger (R-Ill.) joined Rep. Brad Schneider (D-Ill.) to introduce bipartisan legislation that would deny Foreign Tax Credits and other tax benefits to companies that pay taxes to Russia and Belarus. The Support Ukraine Through Our Tax Code Act aims to hold accountable corporations, trusts, partnerships, estates, and people who continue to do business in Russia, and therefore contribute to its war effort through tax payments. Senate Finance Chair Ron Wyden and Finance Committee member Rob Portman introduced bipartisan companion legislation in the Senate last month.

"Russia's unprovoked war and indiscriminate attacks on civilians cannot and must not be supported with taxes paid by U.S. companies," the Representatives said in a joint statement. "With our bipartisan legislation, American businesses are further disincentivized from operating in Russia. It's common sense policy: if you choose to do business in Russia–and by extension contribute taxes to its war machine–the American people should not help foot the bill."

The Support Ukraine Through Our Tax Code Act would add Russia and Belarus to the list of existing countries ineligible for the Foreign Tax Credit, joining North Korea, Iran, Syria, and Cuba.

Representatives Golden, Baird, Carbajal, Bacon, and Kinzinger are all members of the For Country Caucus, a bipartisan group of military veterans committed to working together to strengthen the country, bolster U.S. national security, and support U.S. veterans and their families.

A summary of the legislation is available HERE and bill text is available HERE.