>Enters agreements to refuse or actually refuses to do business with or in Israel
The link does actually include the penalties, which are far more than just losing special tax considerations. It includes hefty fines and even imprisonment under the TRA. The "just losing tax consideration" part is only under the EAR. I understand that part.
It's the fact that they say I cannot boycott Israel independently.
I'm still confused at how this can be fully Constitutional. Say I care a lot about the Palestinians and object to their treatment by the government and military of Israel. Say I make widgets wholesale for people to resell retail.
So I say, if you buy my product and resell it you make money and your government takes some of that money, as is normal. Therefore, I will not sell to any company that sells this in Israel as I do not want to my product to be used to make money for a government whose actions I condemn. I don't care if you are a Jew, a Christian, an Arab and/or even a Palestinian, if you want to sell my product in Israel and taxes which go to the Israeli government will be collected on that, I'm not selling it to you. Not just certain companies within Israel, all of them. Anyone who sells my product and thus makes money for the Israel government, nope, I'm not doing it.
That's the part I have a problem with. If I don't actively try to stop Israel from doing anything but want to take an active role in not helping them in any way, I'm breaking the law? I don't see if how I want to act independently the Arab League but what I want to do aligns with part of what they want to do, that is a problem? I should be able to not support what I see as a bad actor.
No.
That link the parent commenter shared is a very good overview: it basically means that your company will not receive special corporate tax consideration if your company:
Enters agreements to refuse or actually refuses to do business with or in Israel or with blacklisted companies.
Enters agreements to discriminate or actually discriminates against other persons based on race, religion, sex, national origin or nationality.
Enters agreements to furnish or actually furnishes information about business relationships with or in Israel or with blacklisted companies.
Enters agreements to furnish or actually furnishes of information about the race, religion, sex, or national origin of another person.
(e.g. “hey [anti-Semitic company], this competing businessperson is a Jew, if you were wondering”)
In any of these cases, there are exceptions and matters of interpretation.
Whether or not you think this is appropriate for the government, it's not as simple as “you can't engage in a boycott as a matter of personal conscience”.