[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6416 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 6416

   To amend the Internal Revenue Code of 1986 to impose certain tax 
         penalties in connection with the invasion of Ukraine.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 15, 2023

Mr. Doggett (for himself, Mr. Wilson of South Carolina, Mr. Bacon, Mr. 
Fitzpatrick, Mrs. Radewagen, Ms. Salazar, Mr. Smith of New Jersey, Mr. 
Blumenauer, Mr. Boyle of Pennsylvania, Ms. Chu, Mr. Cleaver, Mr. Cohen, 
   Mr. Costa, Mr. Cuellar, Mr. Davis of Illinois, Mr. Garamendi, Mr. 
Goldman of New York, Mr. Gottheimer, Mr. Green of Texas, Mr. Grijalva, 
   Mr. Johnson of Georgia, Ms. Kaptur, Mr. Keating, Mr. Khanna, Mr. 
Kildee, Mr. Landsman, Mr. Lieu, Mr. Lynch, Mr. Magaziner, Mr. McGovern, 
   Mr. Meeks, Mr. Morelle, Ms. Norton, Mr. Pallone, Mr. Panetta, Mr. 
Pascrell, Mr. Payne, Mr. Ruppersberger, Ms. Schakowsky, Mr. Schiff, Mr. 
Schneider, Mr. Sherman, Mr. Swalwell, Ms. Titus, Mr. Trone, Mr. Vargas, 
 Mr. Quigley, Mr. Lamborn, Ms. Stevens, Ms. Meng, Mr. Nadler, and Mr. 
    Tonko) introduced the following bill; which was referred to the 
Committee on Foreign Affairs, and in addition to the Committee on Ways 
 and Means, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to impose certain tax 
         penalties in connection with the invasion of Ukraine.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Russian War Crimes in Ukraine Tax 
Act''.

SEC. 2. TAXATION OF INCOME ON FROZEN ASSETS OF RUSSIA AND BELARUS.

    (a) In General.--Subpart D of part II of subchapter N of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 892 the following new section:

``SEC. 892A. TAXATION OF INCOME ON FROZEN ASSETS OF RUSSIA AND BELARUS.

    ``(a) In General.--Notwithstanding sections 892 and 895 (or any 
other provision of law), there is hereby imposed for each taxable year 
on the disqualified income of any specified foreign government a tax 
equal to 100 percent thereof.
    ``(b) Withholding.--
            ``(1) In general.--Notwithstanding section 203 of the 
        International Emergency Economic Powers Act (or any other 
        provision of law), any person having control, receipt, custody, 
        disposal, or payment of disqualified income with respect to 
        which tax is imposed under subsection (a) shall deduct and 
        withhold from such income a tax equal to 100 percent thereof.
            ``(2) Application of certain rules.--For purposes of 
        subchapter B of chapter 3, section 33, and such other 
        provisions as the Secretary may provide, paragraph (1) shall be 
        treated as part of subchapter A of chapter 3.
    ``(c) Disqualified Income.--For purposes of this section, the term 
`disqualified income' means any interest or dividends payable with 
respect to assets which are blocked using the authorities provided by 
section 203 of the International Emergency Economic Powers Act.
    ``(d) Specified Foreign Government.--For purposes of this section, 
the term `specified foreign government' means the foreign governments 
(within the meaning of section 892 and the regulations issued 
thereunder) of Russia and Belarus.''.
    (b) Clerical Amendment.--The table of sections for subpart D of 
part II of subchapter N of chapter 1 of such Code is amended by 
inserting after the item relating to section 892 the following new 
item:

``Sec. 892A. Taxation of income on frozen assets of Russia and 
                            Belarus.''.
    (c) Override of Treaty Obligations.--Notwithstanding any other 
provision of law, this section (and the amendments made by this 
section) shall apply without regard to any treaty obligation of the 
United States.
    (d) Effective Date.--The amendments made by this section shall 
apply to interest and dividends received after the date of the 
enactment of this Act.

SEC. 3. ESTABLISHMENT OF UKRAINE RECONSTRUCTION TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. UKRAINE RECONSTRUCTION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Ukraine 
Reconstruction Trust Fund', consisting of such amounts as may be 
appropriated to such fund as provided in this section.
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Ukraine Reconstruction Trust Fund amounts equivalent to the net 
revenues received in the Treasury from the taxes imposed under section 
892A.
    ``(c) Expenditures From Trust Fund.--Amounts in the Ukraine 
Reconstruction Trust Fund shall be available, as provided in 
appropriations Acts, only to the Secretary of State for purposes of--
            ``(1) reconstruction and rebuilding efforts in Ukraine,
            ``(2) humanitarian assistance to the people of Ukraine,
            ``(3) fostering long-term economic growth and private 
        sector development in Ukraine, and
            ``(4) bolstering transparent and accountable governance of 
        the Ukrainian economy.
    ``(d) Trust Fund Not Interest-Bearing.--Section 9602(b) shall not 
apply to the Ukraine Reconstruction Trust Fund.
    ``(e) Requirements Under Foreign Assistance Act of 1961.--Any 
assistance made available from amounts in the Ukraine Reconstruction 
Trust Fund shall be subject to all applicable requirements for the 
provision of such assistance for the same or similar purpose authorized 
by the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), 
including requirements under such Act relating to administrative 
authorities, congressional notifications, and reporting.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at the end the following 
new item:

``Sec. 9512. Ukraine Reconstruction Trust Fund.''.
    (c) Report.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and annually thereafter for 3 years, 
        the Secretary of State shall submit to the appropriate 
        congressional committees a report detailing the use of any 
        funds made available from the Ukrainian Reconstruction Trust 
        Fund.
            (2) Appropriate congressional committees.--In this 
        subsection, the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Foreign Affairs, the Committee 
                on Ways and Means, and the Committee on Appropriations 
                of the House of Representatives; and
                    (B) the Committee on Foreign Relations, the 
                Committee on Finance, and the Committee on 
                Appropriations of the Senate.

SEC. 4. DIPLOMATIC ASSISTANCE AUTHORIZATION.

    (a) Findings.--Congress makes the following findings:
            (1) Since February 24, 2022, Russia has been engaged an 
        illegal, unjustifiable, and unprovoked war against Ukraine.
            (2) On November 14, 2022, the United Nations adopted a 
        resolution recognizing that Russia must bear the international 
        legal consequences for its violations of international law and 
        Ukrainian sovereignty.
            (3) On December 23, 2022, Congress passed H.R. 2617, the 
        Consolidated Appropriations Act 2023, which was signed by the 
        President of the United States on December 29, 2022, and 
        authorized the United States Government to transfer the 
        illegally begotten assets of Russian oligarchs to Ukraine.
            (4) In October 2023, nearly $300,000,000,000 of Russian 
        sovereign assets are frozen in countries around the world but 
        less than 2 percent of those funds are in held in the United 
        States.
            (5) The transfer of a 3 percent capital gain on the Russian 
        sovereign assets frozen around the world would exceed a 
        transfer of 100 percent of all of the Russian sovereign assets 
        currently within the United States.
    (b) Statement of Policy.--It is the policy of the United States 
that:
            (1) Any interest or return on Russian sovereign assets 
        frozen by allies and partners around the world should be 
        transferred to Ukraine.
            (2) The United States should make it a diplomatic priority 
        to encourage allies and partners in Europe, Asia, and around 
        the world to transfer any return on Russian sovereign assets to 
        Ukraine.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated $25,000,000 for the United States Special Representative 
for Ukraine's Economic Recovery to advance the policies set forth in 
subsection (b).

SEC. 5. SUPPORT AT THE UNITED NATIONS.

    (a) In General.--The Secretary of State shall direct the United 
States Permanent Representative to the United Nations to use the voice, 
vote, and influence of the United States to encourage other countries 
to develop mechanisms to transfer any capital gains on Russian 
sovereign assets to Ukraine.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of State shall submit a report to 
the Committee on Foreign Affairs of the House of Representatives and 
the Committee on Foreign Relations of the Senate a report detailing 
efforts and actions of the Permanent Representative as directed by 
subsection (a).
                                 <all>