New IDEA Act

H.R. 3715, called the New IDEA Act (New Illegal Deduction Elimination Act), would change how wages paid to unauthorized aliens are treated for federal income tax purposes and would expand immigration-enforcement tools tied to the tax system. The core tax change disallows a deduction for wages paid to unauthorized aliens (as defined by immigration law), with a safe harbor for employers who participate in E-Verify and meet certain conditions. The bill also broadens information sharing and enforcement between tax and immigration agencies, lengthens the window to assess taxes tied to such a deduction, and makes several changes to the E-Verify program to make it permanent and more widely usable, including aligning hiring practices with verification requirements for job offers and current employees. Some provisions are stated to take effect on enactment, while others apply to tax years beginning after December 31, 2024.