Bipartisan effort underway to disallow Foreign Tax Credits for Companies Operating in Russia

Senators Ron Wyden (D-Ore.) and Rob Portman (R-Ohio) on April 7^th released a discussion draft on legislation that would disallow Foreign Tax Credits for companies that pay taxes to the Russian government.

Wyden is the Chairman of the Senate Finance Committee, which is charged with ushering tax legislation through the Senate. Portman is a senior member on that Committee.

A discussion draft on legislation means that the lawmakers have released legislative text that other lawmakers can comment on and suggest changes to the text. This can be a time-consuming process before a finalized bill is completed and introduced.

Given Russia’s invasion in Ukraine, this legislation stands a very good chance of passing the Senate and possibly becoming law. That being said, the Senate will soon embark on a two-week recess so quick action on this bill is unlikely.

A summary of the legislation can be found here.

The discussion draft legislative text can be found here.