Under current tax law, businesses can write off most ordinary employee benefit expenses as deductions on their federal taxes. This bill would block companies from taking that deduction for two specific categories of employee reimbursements: travel costs paid for an employee to obtain an abortion, and medical costs paid for gender transition procedures performed on an employee's minor child under age 18. The bill defines gender transition procedures broadly, covering surgeries, puberty-blocking drugs, and cross-sex hormones, but exempts treatments for recognized medical conditions involving ambiguous sex characteristics. Employers who continue offering these benefits could still do so, but would lose the federal tax deduction for those costs.
Corporate Benefits
- Business expense deduction — Removed for employer reimbursements covering abortion travel and minor-child gender-transition procedures
Congressional Summary
No Tax Breaks for Radical Corporate Activism ActThis bill disallows a business expense tax deduction for reimbursements or other amounts paid by an employer to an employee for travel expenses to obtain an abortion or expenses for any gender transition procedure for a minor child (under 18 years old) of an employee. (Under current law, a tax deduction generally is allowed for costs of operating a trade or business, subject to certain conditions and exceptions.)The bill defines gender transition procedure as any medical or surgical service (including physician services, hospital services, and prescription drugs) that seeks to (1) alter or remove physiological or anatomical characteristics or features that are typical for the individual's biological sex, or (2) instill or create physiological or anatomical characteristics that resemble a sex different from the individual's sex at birth.However, under the bill, the term gender transition procedure does not include services for treatment of a medically verified sex development disorder (e.g., the presence of 46 XX chromosomes with virilization, 46 XY chromosomes with undervirilization, or both ovarian and testicular tissue) or for the treatment of any infection, injury, disease, or disorder caused or exacerbated by the performance of any gender transition procedure.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-11
- Date Added
- 2026-06-13
- Source
- Congress.gov →
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