Federal

No Tax Breaks for Radical Corporate Activism Act of 2023

Source: Congress.gov · 1,368 words in original text

What This Bill Does

This bill changes the tax code to prevent employers from claiming tax deductions (reductions in taxable income) for reimbursing employees' costs related to two things: travel to obtain an abortion, or gender transition procedures for minor children (people under age 18). The bill is called the "No Tax Breaks for Radical Corporate Activism Act of 2023."

Who It Affects

Employers who currently reimburse employees for abortion-related travel costs or gender transition procedures for their minor children would be directly affected by this bill.

Key Provisions

• Employers cannot claim a tax deduction for money they pay to reimburse employees for travel to obtain an abortion (Sec. 2(a)) • Employers cannot claim a tax deduction for money they pay to reimburse employees for any gender transition procedure for a minor child of the employee (Sec. 2(a)) • The bill defines "gender transition procedure" as medical or surgical services that alter or remove body characteristics typical of a person's biological sex, or create characteristics of a different sex, including surgeries, hormone treatments, and puberty-blocking drugs (Sec. 2(a)) • The bill includes exceptions for treating certain medical conditions involving sex development that doctors can verify through genetic or biochemical testing, and for treating infections or injuries caused by gender transition procedures (Sec. 2(a))

What Changes

If this bill becomes law, employers would lose the ability to deduct from their taxes any money spent reimbursing employees for abortion-related travel or gender transition procedures for minor children. These expenses would no longer count as legitimate business deductions.

Important Definitions

The bill defines the following terms: • "Gender transition procedure" - Medical or surgical services meant to change or remove body parts typical of someone's biological sex, or create characteristics of a different sex. This includes surgeries, puberty-blocking drugs, and cross-sex hormones. • "Gender" - The psychological, behavioral, social and cultural aspects of being male or female. • "Gender transition" - The process where a person shifts from identifying with their biological sex to identifying as a different gender, which may include social, legal or physical changes. • "Minor child" - A person who has not reached age 18. • "Puberty-blocking drugs" - Specific medications used to delay or stop puberty development in children to assist with gender transition. • "Cross-sex hormones" - Testosterone given to biological females or estrogen given to biological males at much higher doses than naturally occur.

Effective Date

The changes apply to tax years (the yearly period used for calculating taxes) beginning after the date this bill becomes law.

II 118TH CONGRESS 1ST SESSION S. 187 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 SENATE OF THE UNITED STATES JANUARY 31, 2023 Mr. RUBIO (for himself and Mr. DAINES) 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 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 of 2023’’. 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 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 187 IS (s) as subsection (t), and by inserting after subsection (r) 1 the following new subsection: 2 ‘‘(s) DISALLOWANCE OF CERTAIN EXPENSES RELAT- 3 ING TO ABORTION OR CHILD GENDER TRANSITION.— 4 ‘‘(1) IN GENERAL.—No deduction shall be al- 5 lowed under this chapter to an employer for any 6 amount paid or incurred to reimburse an employee 7 for, or to otherwise pay, expenses in connection 8 with— 9 ‘‘(A) travel for the purpose of obtaining an 10 abortion, or 11 ‘‘(B) any gender transition procedure for a 12 minor child of the employee. 13 ‘‘(2) DEFINITIONS.—For purposes of this sub- 14 section— 15 ‘‘(A) GENDER TRANSITION PROCEDURE.— 16 ‘‘(i) IN GENERAL.—The term ‘gender 17 transition procedure’ means any medical or 18 surgical service which seeks to alter or re- 19 move physiological or anatomical charac- 20 teristics or features which are typical for 21 the individual’s biological sex, or to instill 22 or create physiological or anatomical char- 23 acteristics which resemble a sex different 24 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 187 IS 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 presence of 46 XX chromosomes 22 with virilization, 46 XY chro- 23 mosomes with undervirilization, 24 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 187 IS or both ovarian and testicular tis- 1 sue, or 2 ‘‘(bb) other physician-diag- 3 nosed disorder of sexual develop- 4 ment, with respect to which the 5 physician has determined 6 through genetic or biochemical 7 testing that the individual does 8 not have normal sex chromosome 9 structure, sex steroid hormone 10 production, or sex steroid hor- 11 mone action for a biological male 12 or biological female, or 13 ‘‘(II) treatment of any infection, 14 injury, disease, or disorder caused or 15 exacerbated by the performance of 16 any gender transition procedure, 17 whether or not the gender transition 18 procedure was performed in accord- 19 ance with State and Federal law or 20 whether not a deduction for expenses 21 in connection with the gender transi- 22 tion procedure is allowable under this 23 chapter. 24 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 187 IS ‘‘(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 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 187 IS jury, or physical illness which would, 1 as certified by a physician, place the 2 individual in imminent danger of 3 death or impairment of major bodily 4 function unless surgery is performed. 5 ‘‘(vi) GENITAL SURGERY.—The term 6 ‘genital surgery’ includes surgical proce- 7 dures such as— 8 ‘‘(I) penectomy, orchiectomy, 9 vaginoplasty, clitoroplasty, or 10 vulvoplasty for biologically male pa- 11 tients, and 12 ‘‘(II) hysterectomy, ovariectomy, 13 reconstruction of the fixed part of the 14 urethra with or without a 15 metoidioplasty or a phalloplasty, vagi- 16 nectomy, scrotoplasty, or implantation 17 of erection or testicular prostheses for 18 biologically female patients. 19 ‘‘(vii) NON-GENITAL SURGERY.—The 20 term ‘non-genital surgery’ includes surgical 21 procedures such as liposuction, lipofilling, 22 voice surgery, and— 23 ‘‘(I) augmentation mammoplasty, 24 facial feminization surgery, thyroid 25 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 187 IS 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 VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 187 IS larger or more potent than would normally 1 occur naturally in healthy biological fe- 2 males, and estrogen given to biological 3 males at doses which are profoundly larger 4 or more potent than would normally occur 5 naturally in healthy biological males. 6 ‘‘(B) MINOR CHILD.—The term ‘minor 7 child’ means an individual who has not attained 8 age 18.’’. 9 (b) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to taxable years beginning after 11 the date of the enactment of this Act. 12 Æ VerDate Sep 11 2014 00:59 Feb 10, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S187.IS S187 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.