What This Bill Does
This bill changes the tax code (Internal Revenue Code of 1986) to stop employers from deducting business expenses when they pay or reimburse employees for two things: travel to obtain an abortion, or gender transition procedures for their minor children. The bill applies to taxable years that begin after it becomes law.
Who It Affects
Employers who currently reimburse employees for abortion-related travel or gender transition procedures for minor children.
Key Provisions
• Employers cannot claim a tax deduction (a reduction in taxable income) for money paid to reimburse employees for travel to get an abortion. (Sec. 2(a), subsection (s)(1)(A))
• Employers cannot claim a tax deduction for money paid to reimburse employees for gender transition procedures for the employee's minor child. (Sec. 2(a), subsection (s)(1)(B))
• The bill defines "gender transition procedure" to mean medical or surgical services that alter, remove, or create physical characteristics to match a gender different from the person's biological sex at birth, including surgery, puberty-blocking drugs, and cross-sex hormones. (Sec. 2(a), subsection (s)(2)(A))
• The bill excludes from this definition medical treatment for disorders of sex development (conditions where external biological sex characteristics are ambiguous or unclear) and treatment for infections or injuries caused by gender transition procedures. (Sec. 2(a), subsection (s)(2)(A)(ii))
• A "minor child" is defined as someone under age 18. (Sec. 2(a), subsection (s)(2)(B))
What Changes
If this bill becomes law, employers will no longer be able to reduce their taxes by deducting expenses when they pay for employee travel to obtain abortions or when they pay for gender transition procedures for employees' minor children. This affects how much tax employers owe the federal government.
Important Definitions
The bill defines multiple terms:
• "Gender transition procedure": Medical or surgical services that alter or remove physical characteristics typical for a person's biological sex, or create characteristics matching a different sex, for the purpose of gender transition. Includes doctor visits, hospital services, gender transition surgery, puberty-blocking drugs, and cross-sex hormones.
• "Gender transition surgery": Surgical services (both genital and non-genital) performed to help someone transition genders, but not surgery performed because someone has a physical disorder, injury or illness that would cause imminent danger of death or major bodily harm without surgery.
• "Genital surgery": Specific surgical procedures including penectomy, orchiectomy, vaginoplasty, clitoroplasty, vulvoplasty, hysterectomy, ovariectomy, metoidioplasty, phalloplasty, vaginectomy, scrotoplasty, and implantation of prostheses.
• "Non-genital surgery": Surgical procedures including liposuction, lipofilling, voice surgery, augmentation mammoplasty (breast enlargement), facial feminization surgery, thyroid cartilage reduction, gluteal augmentation (buttock enlargement), hair reconstruction, subcutaneous mastectomy (removal of breast tissue), pectoral implants, and various aesthetic procedures.
• "Puberty-blocking drugs": Gonadotropin-releasing hormone analogues or other synthetic drugs used to stop hormone production and delay or suppress puberty in children for gender transition purposes.
• "Cross-sex hormones": Testosterone or other androgens given to biological females at doses much larger than naturally occur in healthy biological females, or estrogen given to biological males at doses much larger than naturally occur in healthy biological males.
• "Minor child": An individual who has not reached age 18.
• "Gender": The psychological, behavioral, social, and cultural aspects of being male or female.
• "Gender transition": The process where someone stops identifying and living as the gender matching their biological sex and starts identifying and living as a different gender, which may involve social, legal, or physical changes.
Effective Date
The amendments apply to taxable years beginning after the date the bill is enacted into law. (Sec. 2(b))
I
118TH CONGRESS
1ST SESSION
H. R. 429
To amend the Internal Revenue Code of 1986 to deny the trade or business
expense deduction for the reimbursement of employee costs of child
gender transition procedure or travel to obtain an abortion.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 2023
Mr. MAST (for himself, Mr. BISHOP of North Carolina, Mr. DUNCAN, Mr.
GOSAR, Mr. GAETZ, and Mr. NORMAN) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to deny the
trade or business expense deduction for the reimburse-
ment of employee costs of child gender transition proce-
dure or travel to obtain an abortion.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘No Tax Breaks for
4
Radical Corporate Activism Act’’.
5
SEC. 2. DENIAL OF DEDUCTION.
6
(a) IN GENERAL.—Section 162 of the Internal Rev-
7
enue Code of 1986 is amended by redesignating subsection
8
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•HR 429 IH
(s) as subsection (t), and by inserting after subsection (r)
1
the following new subsection:
2
‘‘(s) DISALLOWANCE OF CERTAIN EXPENSES RELAT-
3
ING TO ABORTION OR CHILD GENDER TRANSITION.—
4
‘‘(1) IN GENERAL.—No deduction shall be al-
5
lowed under this chapter to an employer for any
6
amount paid or incurred to reimburse an employee
7
for, or to otherwise pay, expenses in connection
8
with—
9
‘‘(A) travel for the purpose of obtaining an
10
abortion, or
11
‘‘(B) any gender transition procedure for a
12
minor child of the employee.
13
‘‘(2) DEFINITIONS.—For purposes of this sub-
14
section—
15
‘‘(A) GENDER TRANSITION PROCEDURE.—
16
‘‘(i) IN GENERAL.—The term ‘gender
17
transition procedure’ means any medical or
18
surgical service which seeks to alter or re-
19
move physiological or anatomical charac-
20
teristics or features which are typical for
21
the individual’s biological sex, or to instill
22
or create physiological or anatomical char-
23
acteristics which resemble a sex different
24
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•HR 429 IH
from the individual’s birth sex, for the pur-
1
pose of gender transition, including—
2
‘‘(I) physician’s services and in-
3
patient and outpatient hospital serv-
4
ices, including gender transition sur-
5
gery, and
6
‘‘(II) prescribed drugs related to
7
gender transition, including puberty-
8
blocking drugs, cross-sex hormones, or
9
other mechanisms to promote the de-
10
velopment
of
feminizing
or
11
masculinizing features (in the opposite
12
sex).
13
‘‘(ii) EXCEPTIONS.—Such term does
14
not include—
15
‘‘(I) services for treatment of a
16
medically verifiable disorder of sex de-
17
velopment, including—
18
‘‘(aa) external biological sex
19
characteristics
which
are
20
irresolvably ambiguous, such as
21
the presence of 46 XX chro-
22
mosomes with virilization, 46 XY
23
chromosomes
with
24
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•HR 429 IH
undervirilization, or both ovarian
1
and testicular tissue, or
2
‘‘(bb) other physician-diag-
3
nosed disorder of sexual develop-
4
ment, with respect to which the
5
physician
has
determined
6
through genetic or biochemical
7
testing that the individual does
8
not have normal sex chromosome
9
structure, sex steroid hormone
10
production, or sex steroid hor-
11
mone action for a biological male
12
or biological female, or
13
‘‘(II) treatment of any infection,
14
injury, disease, or disorder caused or
15
exacerbated by the performance of
16
any
gender
transition
procedure,
17
whether or not the gender transition
18
procedure was performed in accord-
19
ance with State and Federal law or
20
whether not a deduction for expenses
21
in connection with the gender transi-
22
tion procedure is allowable under this
23
chapter.
24
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•HR 429 IH
‘‘(iii) GENDER.—The term ‘gender’
1
means the psychological, behavioral, social,
2
and cultural aspects of being male or fe-
3
male.
4
‘‘(iv)
GENDER
TRANSITION.—The
5
term ‘gender transition’ means the process
6
in which an individual goes from identi-
7
fying with and living as a gender that cor-
8
responds to his or her biological sex to
9
identifying with and living as a gender dif-
10
ferent from his or her biological sex, and
11
may involve social, legal, or physical
12
changes.
13
‘‘(v)
GENDER
TRANSITION
SUR-
14
GERY.—
15
‘‘(I) IN
GENERAL.—The term
16
‘gender transition surgery’ means any
17
surgical service, including genital or
18
non-genital surgery, performed for the
19
purpose of assisting an individual with
20
a gender transition.
21
‘‘(II) EXCEPTION.—Such term
22
does not include any service per-
23
formed because the individual suffers
24
from a physical disorder, physical in-
25
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•HR 429 IH
jury, or physical illness which would,
1
as certified by a physician, place the
2
individual in imminent danger of
3
death or impairment of major bodily
4
function unless surgery is performed.
5
‘‘(vi) GENITAL SURGERY.—The term
6
‘genital surgery’ includes surgical proce-
7
dures such as—
8
‘‘(I)
penectomy,
orchiectomy,
9
vaginoplasty,
clitoroplasty,
or
10
vulvoplasty for biologically male pa-
11
tients, and
12
‘‘(II) hysterectomy, ovariectomy,
13
reconstruction of the fixed part of the
14
urethra
with
or
without
a
15
metoidioplasty or a phalloplasty, vagi-
16
nectomy, scrotoplasty, or implantation
17
of erection or testicular prostheses for
18
biologically female patients.
19
‘‘(vii) NON-GENITAL
SURGERY.—The
20
term ‘non-genital surgery’ includes surgical
21
procedures such as liposuction, lipofilling,
22
voice surgery, and—
23
‘‘(I) augmentation mammoplasty,
24
facial feminization surgery, thyroid
25
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•HR 429 IH
cartilage reduction, gluteal augmenta-
1
tion (whether implants or lipofilling),
2
hair reconstruction, or various aes-
3
thetic procedures for biologically male
4
patients, and
5
‘‘(II) subcutaneous mastectomy,
6
pectoral implants, or various aesthetic
7
procedures for biologically female pa-
8
tients.
9
‘‘(viii) PUBERTY-BLOCKING DRUGS.—
10
The term ‘puberty-blocking drugs’ means
11
gonadotropin-releasing hormone (GnRH)
12
analogues or other synthetic drugs used in
13
biological males to stop luteinizing hor-
14
mone secretion and therefore testosterone
15
secretion, and synthetic drugs used in bio-
16
logical females to stop the production of
17
estrogen and progesterone, when used to
18
delay or suppress pubertal development in
19
children for the purpose of assisting an in-
20
dividual with a gender transition.
21
‘‘(ix) CROSS-SEX
HORMONES.—The
22
term ‘cross-sex hormones’ means testos-
23
terone or other androgens given to biologi-
24
cal females at doses which are profoundly
25
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•HR 429 IH
larger or more potent than would normally
1
occur naturally in healthy biological fe-
2
males, and estrogen given to biological
3
males at doses which are profoundly larger
4
or more potent than would normally occur
5
naturally in healthy biological males.
6
‘‘(B) MINOR
CHILD.—The term ‘minor
7
child’ means an individual who has not attained
8
age 18.’’.
9
(b) EFFECTIVE DATE.—The amendments made by
10
this section shall apply to taxable years beginning after
11
the date of the enactment of this Act.
12
Æ
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