The U.S. House of Representatives on Nov. 21 voted 219-184 to approve a bipartisan bill supported by U.S. Reps. French Hill (R-AR) and Ron Estes (R-KS) that would remove the tax-exempt status of U.S.-based organizations found to be materially supporting terrorist organizations.
The Stop Terror-Financing and Tax Penalties on American Hostages Act, H.R. 9495, which now heads to the U.S. Senate for consideration, also would prevent the Internal Revenue Service (IRS) from charging penalties or assessing interest on taxes owed by Americans who have been held hostage or wrongfully detained abroad — language offered by Rep. Hill from the bipartisan Stop Tax Penalties on American Hostages Act of 2024, H.R. 7791, which he proposed in March alongside bill sponsor U.S. Rep. Dina Titus (D-NV).
“After suffering an unfathomable experience as a hostage or wrongful detainee, the last thing Americans who were held against their will should receive is a notice from their own government telling them they owe penalties for taxes missed under circumstances far beyond their control,” said Rep. Hill, co-chair of the Hostage Task Force.
The legislation, he added, “eases that burden and corrects a crucial gap in our laws that punishes these Americans by burdening them with penalties and fines from the IRS after they return home.”
Rep. Estes spoke on the House floor in support of H.R. 9495 prior to the House vote.
“Our discussion today is against the backdrop of the atrocious attacks on Israel by Hamas terrorists more than a year ago, and while nearly 6,000 miles away from our nation’s capital, seven Americans — three of whom are presumed dead — are still held captive by Hamas,” said Rep. Estes.
“Mr. Speaker, I know this bill won’t bring them home, but it does two critical things to prevent the support of terrorists and to provide some relief when our brothers and sisters do arrive back on U.S. soil,” he added. “The United States shouldn’t be giving any incentive for organizations to be helpful for terrorists. Period.”
To advance H.R. 9495, the House last week overcame a Nov. 12 block of the bill by Democrats who voted against it, even though the U.S. House Ways and Means Committee had approved it with unanimous support.
U.S. Reps. Claudia Tenney (R-NY) and Brad Schneider (D-IL) introduced H.R. 9495 on Sept. 9. The Ways and Means Committee Sept. 11 voted 38-0 to approve it before sending it to the full chamber for action.