No Tax Breaks for Radical Corporate Activism Act This bill disallows a business expense tax deduction for any reimbursement paid by an employer to an employee for travel expenses to obtain an abortion, or for the costs of any gender transition procedure for the employee's minor child.
If enacted, HB 429 would significantly modify the landscape of allowable tax deductions for employers. It would specifically prevent businesses from claiming tax deductions for reimbursements given to employees for expenses related to child gender transition procedures and travel for abortions. The bill is positioned as a protective measure against companies supporting or promoting such social policies, directly influencing the financial strategies of employers who provide such benefits.
House Bill 429, also referred to as the 'No Tax Breaks for Radical Corporate Activism Act', seeks to amend the Internal Revenue Code of 1986 by disallowing certain business expense tax deductions related to employee reimbursements for travel expenses incurred to obtain an abortion or for the costs associated with gender transition procedures for a minor child. This legislation indicates a targeted move against what the sponsors refer to as 'radical corporate activism' by limiting tax benefits associated with these areas.
The bill has generated considerable debate and could potentially exacerbate existing divides concerning issues of reproductive rights and gender identity healthcare. Proponents argue it is necessary to curb corporate influence in social issues, while opponents may view it as an infringement on employee benefits, thus limiting choices available to families dealing with gender transition and abortion. The terms set within the bill, particularly the definitions of 'gender transition procedure' and what constitutes a related 'minor child', may also raise further questions and challenges regarding enforcement and interpretation.
As of January 20, 2023, HB 429 was referred to the House Committee on Ways and Means, with its future decision pending legislative discussions.