When a company spends money trying to discourage its workers from unionizing — hiring anti-union consultants, holding mandatory meetings about why employees shouldn't organize, or fighting unfair labor practice complaints — those costs are currently tax-deductible as ordinary business expenses. According to the bill's findings, companies spend roughly $340 million a year on outside consultants alone to sway workers' opinions during union drives. This bill would eliminate that tax deduction, meaning employers could still spend the money but taxpayers would no longer be subsidizing it. The bill covers a wide range of anti-union spending, including costs tied to NLRB unfair labor practice complaints and any meetings where union topics are discussed with employees who could be part of a bargaining unit. It carves out exceptions for legitimate collective bargaining, voluntary union recognition, and legally required workplace postings. Employers would also be required to report their anti-union spending on their tax returns, with penalties starting at $10,000 for failing to do so, and third-party consultants hired for these efforts would have to file their own information returns with the IRS.
Congressional Summary
No Tax Breaks for Union Busting (NTBUB) ActThis bill excludes from the tax deduction for ordinary and necessary business expenses amounts paid or incurred to influence employees with respect to labor organizations or labor organization activities. The bill also imposes information reporting requirements related to such expenses and imposes penalties for failure to comply. Under the bill, amounts paid to influence employees with respect to labor organizations include amounts paid (including wages and other costs) in connection with an action that results in a complaint or settlement related to an unfair labor practice or a finding of interference, influence, or coercion related to railway employees’ rights to organize and bargain collectively;for any meeting or training attended by employees and at which labor organizations are discussed; andthat require certain employer disclosures and financial reporting.(Some exceptions apply.) The bill requires employers to file a return reporting certain information related to expenses paid to influence employees with respect to labor organizations and imposes a penalty for noncompliance. The amount of the penalty is the greater of (1) $10,000, or (2) $1,000 multiplied by the number full-time equivalent employees. Additional penalties apply for violations that continue for more than 90 days. The bill also imposes information reporting requirements on persons conducting activities on behalf of another person to influence employees with respect to labor organizations.The bill allows certain penalties for noncompliance with the reporting requirements to be waived if noncompliance is due to reasonable cause and not willful neglect.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-04-04
- Date Added
- 2026-04-09