HR 1208119th CongressIn Committee

No Tax Breaks for Radical Corporate Activism Act

Introduced: Feb 11, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill, titled the No Tax Breaks for Radical Corporate Activism Act, would add a new provision to the Internal Revenue Code that bars employers from deducting certain health-related reimbursements as business expenses. Specifically, it would disallow deductions for reimbursements or payments to employees for travel to obtain an abortion, and for any gender transition procedures for an employee’s minor child (under 18). The new rules would apply to tax years beginning after the enactment date. The overall aim appears to be restricting how corporations help employees with costs tied to abortion travel and to gender-transition-related care for child dependents, by removing those costs as deductible business expenses.

Key Points

1Denial of deduction: Employers would not be allowed to deduct reimbursements or payments to employees for travel to obtain an abortion or for any gender transition procedure for a minor child.
2Scope of expenses: Covers both reimbursement of employee costs and direct payments by the employer, tied to the two specified categories.
3Definitions: The bill provides detailed definitions of “gender transition procedure,” including medical or surgical services, puberty-blocking drugs, cross-sex hormones, and related terms, with explicit (narrow) exceptions.
4Exceptions: The definitions carve out certain cases (e.g., treatment of medically verifiable disorders of sex development and treatment of infections or injuries caused by a gender-transition procedure).
5Effective date: Applies to taxable years beginning after enactment.

Impact Areas

Primary group/area affected: Employers that offer health benefits or reimbursement programs for abortion travel or gender-transition procedures for employees’ minor children; corporate benefits/HR departments.Secondary group/area affected: Employees and their families who rely on employer-provided reimbursements for abortion travel or gender-transition care for dependents; health services providers connected to these procedures may feel downstream effects if employer demand shifts.Additional impacts: Company tax planning and overall compensation packages could be influenced since these expenses would no longer be deductible; potential compliance and record-keeping requirements for employers to ensure proper treatment under the code; possible broader political and policy debates about employer-provided benefits and women’s/child health services.

Generated by gpt-5-nano on Nov 18, 2025