II 

117TH CONGRESS 

2D SESSION S. 4218 

To amend the Internal Revenue Code of 1986 to deny foreign tax credits 

or deductions with respect to taxes paid or accrued to the Russian 

Federation and the Republic of Belarus, to provide for the denial of 

certain other tax benefits in connection with the invasion of Ukraine, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 12, 2022 

Mr. WYDEN (for himself and Mr. PORTMAN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to deny foreign 

tax credits or deductions with respect to taxes paid or 

accrued to the Russian Federation and the Republic 

of Belarus, to provide for the denial of certain other 

tax benefits in connection with the invasion of Ukraine, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Support Ukraine 

5 Through Our Tax Code Act’’. 


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1 SEC. 2. DENIAL OF FOREIGN TAX CREDIT, ETC., WITH RE2 SPECT TO TAXES PAID OR ACCRUED TO THE 

3 RUSSIAN FEDERATION AND THE REPUBLIC 

4 OF BELARUS. 

5 (a) IN GENERAL.—Section 901(j)(2) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new subparagraph: 

8 ‘‘(C) SPECIAL RULE FOR RUSSIA AND

9 BELARUS.— 

10 ‘‘(i) IN GENERAL.—This subsection 

11 shall apply to the Russian Federation and 

12 the Republic of Belarus during the period 

13 described in clause (ii). 

14 ‘‘(ii) PERIOD OF APPLICATION.—The 

15 period described in this clause with respect 

16 to any country is the period— 

17 ‘‘(I) beginning on the date that is 

18 90 days after the date of the enact19 ment of this subparagraph, and 

20 ‘‘(II) ending on the date on 

21 which the resumption of the applica22 tion of the rates of duty set forth in 

23 column 1 of the Harmonized Tariff 

24 Schedule of the United States to 

25 products of that country takes effect 

26 pursuant to section 4(b) of the SusVerDate Sep 11 2014 23:18 May 17, 2022 Jkt 000000 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4218.IS S4218

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1 pending Normal Trade Relations with 

2 Russia and Belarus Act.’’. 

3 (b) DEDUCTION DENIED.— 

4 (1) IN GENERAL.—Section 275(a) of the Inter5 nal Revenue Code of 1986 is amended by inserting 

6 after paragraph (6) the following new paragraph: 

7 ‘‘(7) Income, war profits, and excess profits 

8 taxes paid or accrued (or deemed paid under section 

9 960) to any country described in section 

10 901(j)(2)(C)(i) with respect to income attributable 

11 to any period described in section 901(j)(2)(C)(ii).’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 901(j)(3) of such Code is amended by adding at the 

14 end the following new sentence: ‘‘The preceding sen15 tence shall not apply to any taxes paid or accrued 

16 (or deemed paid under section 960) to any country 

17 described in paragraph (2)(C)(i) with respect to in18 come attributable to any period described in para19 graph (2)(C)(ii).’’. 

20 (c) SPECIAL TRANSITION RULES FOR TAXPAYERS

21 EXITING COUNTRIES FOR WHICH FOREIGN TAX CREDIT

22 IS DENIED.— 

23 (1) IN GENERAL.—If— 

24 (A) any portion of a taxable year of a tax25 payer occurs during the post-exit period, and 


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1 (B) such taxpayer is an applicable tax2 payer for such portion of the taxable year with 

3 respect to a foreign country to which section 

4 901(j)(2)(C) of the Internal Revenue Code of 

5 1986 (as added by subsection (a)) applies, 

6 then, notwithstanding such section 901(j)(2)(C), sec7 tions 901(j)(1)(B) and 952(a)(5) of such Code shall 

8 not apply to income derived by the taxpayer from 

9 such foreign country during such portion of such 

10 taxable year. 

11 (2) APPLICABLE TAXPAYER.— 

12 (A) IN GENERAL.—A taxpayer is an appli13 cable taxpayer with respect to a foreign country 

14 for any portion of a taxable year occurring dur15 ing the post-exit period if— 

16 (i) the gross receipts of the taxpayer 

17 for such portion derived from such foreign 

18 country (determined under rules substan19 tially similar to the rules of part I of sub20 chapter N of chapter 1 of the Internal 

21 Revenue Code of 1986) are— 

22 (I) in the case of the period be23 ginning with the first day of the first 

24 month beginning after the first day of 

25 the post-exit period and ending with 


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1 the last day of the first taxable year 

2 ending on or after such date, less 

3 than 15 percent of such gross receipts 

4 derived during the pre-exit period, and 

5 (II) in the case of any taxable 

6 year beginning after the first day of 

7 the post-exit period, less than 5 per8 cent of such gross receipts derived 

9 during the pre-exit period, or 

10 (ii) the taxpayer meets such other re11 quirements as the Secretary of the Treas12 ury (or the Secretary’s delegate) may by 

13 regulation or guidance prescribe to deter14 mine whether a taxpayer has exited from 

15 doing business in such foreign country. 

16 (B) RULES FOR DETERMINING GROSS RE17 CEIPTS.— 

18 (i) AGGREGATION RULES.—The rules 

19 of section 448(c)(2) shall apply for pur20 poses of this paragraph, except that— 

21 (I) in applying section 52(a), the 

22 exception for foreign corporations 

23 under section 1563(b)(2)(C) shall be 

24 disregarded, and 


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1 (II) in applying section 52(b), the 

2 principles which apply under section 

3 52(a) shall include the modification 

4 under subclause (I) and the term 

5 ‘‘trade or business’’ shall include any 

6 activity treated as a trade or business 

7 under paragraph (5) or (6) of section 

8 469(c) (determined without regard to 

9 the phrase, ‘‘To the extent provided in 

10 regulations’’ in such paragraph (6)). 

11 (ii) SPECIAL RULES.—The rules of 

12 section 448(c)(3) shall apply for purposes 

13 of this paragraph, except that in applying 

14 subparagraph (B) thereof to a taxable year 

15 in which the entire taxable year does not 

16 occur during the post-exit period, the por17 tion of the year during such period shall be 

18 treated as a short taxable year for pur19 poses of determining annualized gross re20 ceipts. 

21 (iii) RECEIPTS RELATED TO HUMANI22 TARIAN PURPOSES.—For purposes of this 

23 subsection, gross receipts shall not include 

24 amounts— 


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1 (I) which are covered under gen2 eral or specific licenses of the Office 

3 of Foreign Assets Control of the De4 partment of the Treasury which have 

5 been identified by the Secretary of the 

6 Treasury (or the Secretary’s delegate) 

7 as licenses to which this clause ap8 plies, or 

9 (II) which the Secretary of the 

10 Treasury (or the Secretary’s delegate) 

11 has otherwise identified as humani12 tarian in nature. 

13 (3) PERIODS.—For purposes of this sub14 section— 

15 (A) PRE-EXIT PERIOD.—The term ‘‘pre16 exit period’’ means— 

17 (i) except as provided in clause (ii), 

18 the 12-month period ending on December 

19 31, 2021, and 

20 (ii) in the case of a taxpayer with a 

21 taxable year which ends on or after No22 vember 30, 2021, and before February 24, 

23 2022, such taxable year. 

24 (B) POST-EXIT PERIOD.—The term ‘‘post25 exit period’’ means, with respect to any foreign 


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1 country, the period during which section 

2 901(j)(2)(C) of the Internal Revenue Code of 

3 1986 (as added by subsection (a)) applies to 

4 such foreign country (determined without re5 gard to this subsection). 

6 (d) EFFECTIVE DATE.—The amendments made by 

7 this section shall take effect on the date of the enactment 

8 of this Act. 

9 SEC. 3. DENIAL OF CERTAIN OTHER TAX BENEFITS IN CON10 NECTION WITH THE INVASION OF UKRAINE. 

11 (a) IN GENERAL.—In the case of any person to whom 

12 this section applies— 

13 (1) section 892(a) of the Internal Revenue Code 

14 of 1986 (relating to income of foreign governments) 

15 shall not apply to income received during the period 

16 this section applies to such person, 

17 (2) notwithstanding section 894 of such Code, 

18 such Code shall be applied to such person without 

19 regard to any treaty obligation of the United States 

20 during the period this section applies to such person, 

21 (3) section 895 of such Code (relating to in22 come derived by a foreign central bank of issue from 

23 obligations of the United States or from bank depos24 its) shall not apply to any central bank of such per25 son, 


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1 (4) sections 871(h) (relating to repeal of tax on 

2 interest of nonresident alien individuals received 

3 from certain portfolio debt investments) and 881(c) 

4 (relating to repeal of tax on interest of foreign cor5 porations received from certain portfolio debt invest6 ments) of such Code shall not apply to interest re7 ceived during the period this section applies to such 

8 person, 

9 (5) section 864(b) of such Code (relating to 

10 trade or business within the United States) shall be 

11 applied without regard to paragraph (2) thereof (re12 lating to exception for trading in securities or com13 modities) with respect to the period during which 

14 this section applies to such person, 

15 (6) section 883 of such Code (relating to exclu16 sion of income from shipping, etc.) shall not apply 

17 to income or earnings received during the period this 

18 section applies to such person, and 

19 (7) notwithstanding section 897(l) of such 

20 Code, any trust, corporation, or other organization 

21 or arrangement established by such person shall not 

22 be treated as a qualified foreign pension fund under 

23 section 897 of such Code during the period this sec24 tion applies to such person. 

25 (b) PERSONS TO WHOM THIS SECTION APPLIES.— 


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1 (1) IN GENERAL.—This section shall apply to— 

2 (A) any person with respect to which sanc3 tions have been imposed by the United States 

4 in relation to the invasion of Ukraine by the 

5 Russian Federation that began on February 24, 

6 2022, 

7 (B) the government of any foreign country 

8 to which section 901(j)(2)(C) of the Internal 

9 Revenue Code of 1986 applies, and 

10 (C) any other person identified by the Sec11 retary as— 

12 (i) a person described in paragraph 

13 (2), and 

14 (ii) a person with respect to which the 

15 application of this section would advance 

16 efforts to restore and maintain the peace, 

17 security, stability, sovereignty, and terri18 torial integrity of Ukraine (as determined 

19 by the Secretary in consultation with the 

20 Secretary of State). 

21 (2) PERSONS DESCRIBED.—A person is de22 scribed in this paragraph if such person— 

23 (A) is a person that— 

24 (i) is participating or has participated 

25 in the invasion of Ukraine, and 


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1 (ii) either— 

2 (I) owns, directly or indirectly, at 

3 least $1,000,000 of assets in the 

4 United States, or 

5 (II) has, for the most recent cal6 endar year, at least $1,000,000 of in7 come from sources within the United 

8 States, 

9 (B) is an entity that— 

10 (i) is organized in, or a tax resident 

11 of, a foreign country (including any sub12 division thereof) to which section 

13 901(j)(2)(C) of such Code applies, 

14 (ii) is not a controlled foreign corpora15 tion (as defined in section 957 of such 

16 Code), and 

17 (iii) has provided or sold goods or 

18 services to a government (including any in19 strumentality thereof) to which section 

20 901(j)(2)(C) of such Code applies, 

21 (C) is an executive, board member, or offi22 cer of an entity described in subparagraph (B), 

23 or 

24 (D) is a person that is related to any other 

25 person to which this section applies. 


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1 (3) SPECIAL RULES FOR CONTROLLED ENTI2 TIES.—Under regulations provided by the Sec3 retary— 

4 (A) IN GENERAL.—The Secretary may 

5 treat a person controlled (within the meaning of 

6 section 954(d)(3) of the Internal Revenue Code 

7 of 1986) by a person described in paragraph 

8 (1) as a person to whom this section applies 

9 without regard to whether such controlled per10 son has been identified by the Secretary under 

11 paragraph (1)(C). 

12 (B) NOTIFICATION.— 

13 (i) IN GENERAL.—The Secretary may 

14 require any person treated as a person to 

15 whom this section applies by reason of sub16 paragraph (A) to provide notice to the Sec17 retary and to each withholding agent of 

18 such person that this section applies to 

19 such person. 

20 (ii) PENALTIES.—For purposes of ap21 plying part II of subchapter B of chapter 

22 68 of the Internal Revenue Code of 

23 1986— 

24 (I) any notice required to be pro25 vided to the Secretary under clause (i) 


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1 shall be treated as an information re2 turn described in section 6724(d)(1) 

3 of such Code, and 

4 (II) any notice required to be 

5 provided to a withholding agent under 

6 clause (i) shall be treated as a payee 

7 statement described in section 

8 6724(d)(2) of such Code. 

9 (c) PERIOD FOR WHICH THIS SECTION APPLIES.— 

10 For purposes of this section— 

11 (1) IN GENERAL.—This section applies to any 

12 person described in subsection (b) during the pe13 riod— 

14 (A) except as provided in paragraph (2), 

15 beginning on the date that is 30 days after the 

16 later of— 

17 (i) the date of the enactment of this 

18 Act, or 

19 (ii) the date such person is first de20 scribed in subsection (b), and 

21 (B) ending on the date such person is no 

22 longer described in subsection (b). 

23 (2) SPECIAL RULES FOR PORTFOLIO INTER24 EST.— 


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1 (A) IN GENERAL.—For purposes of apply2 ing subsection (a)(4), except as provided in sub3 paragraph (B), the period described in para4 graph (1) shall begin on the later of— 

5 (i) the date that is 180 days (60 days 

6 in the case of obligations issued on or after 

7 the date of the enactment of this Act) 

8 after the date of enactment of this Act, or 

9 (ii) 60 days after the date such person 

10 first becomes described in subsection (b). 

11 (B) SIGNIFICANT MODIFICATIONS.—If, 

12 after the date of the enactment of this Act, 

13 there is a significant modification of an obliga14 tion issued before the date of the enactment of 

15 this Act, then, for purposes of applying sub16 section (a)(4), the period described in para17 graph (1) shall begin on the later of— 

18 (i) the earlier of— 

19 (I) the day that is 60 days after 

20 the date of such significant modifica21 tion, or 

22 (II) the day that is 180 days 

23 after the date of the enactment of this 

24 Act, or 


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1 (ii) the date that is 60 days after the 

2 date such person first become described in 

3 subsection (b). 

4 (d) DEFINITIONS.—For purposes of this section— 

5 (1) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of the Treasury. 

7 (2) RELATED.—A person (hereinafter in this 

8 paragraph referred to as the ‘‘related person’’) is re9 lated to any person if— 

10 (A) the related person bears a relationship 

11 to such person which is— 

12 (i) specified in section 267(b) or 

13 707(b)(1) of the Internal Revenue Code of 

14 1986, or 

15 (ii) specified in the regulations pre16 scribed under subsection (f), or 

17 (B) the related person and such person are 

18 engaged in trades or businesses under common 

19 control (within the meaning of subsections (a) 

20 and (b) of section 52 of such Code, determined 

21 after the application of the rules of section 

22 2(c)(2)(B)(i)). 

23 (e) REPORTS.—Not later than 1 year after the date 

24 of the enactment of this Act, and annually thereafter, the 

25 Secretary shall submit to Congress a report detailing the 


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1 parameters, processes, and justifications by which a per2 son is identified by the Secretary under (b)(1)(C) of this 

3 section. 

4 (f) REGULATIONS.—The Secretary shall prescribe 

5 such regulations, rules, or other guidance as the Secretary 

6 determines necessary or appropriate to carry out the pur7 poses of this section. 

8 SEC. 4. SUSPENSION OF TAX INFORMATION EXCHANGES. 

9 If there is a tax convention (within the meaning of 

10 section 6105(c)(2) of the Internal Revenue Code of 1986) 

11 providing for the exchange of tax information between the 

12 United States and any foreign country to which section 

13 901(j)(2)(C) of such Code (as added by section 2(a)) ap14 plies, the Secretary of the Treasury (or the Secretary’s 

15 delegate) shall not exchange such tax information with 

16 such foreign country during the period that such section 

17 applies to such foreign country. 

18 SEC. 5. TREATY OBLIGATIONS. 

19 This Act and the amendments made by this Act shall 

20 be applied without regard to any treaty obligation of the 

21 United States. 

Æ 


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