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Congressional Research Service
Version 00 · Introduced in House · Feb 11, 2025
No Tax Breaks for Radical Corporate Activism Act
This 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.
Showing the opening paragraphs of the official summary.
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.
People & committees
Rep. Mast, Brian J. [R-FL-21] · R–FL
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Jun 10, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-11 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill proposes denying employers tax deductions—expenses used to reduce taxable income—for payments covering travel to obtain an abortion or gender transition procedures for an employee’s child under 18. It would cover both reimbursements to employees and expenses employers pay directly. The proposal includes medical exceptions and would apply to tax years beginning after enactment.
No deduction shall be allowed under this chapter to an employer for any amount paid or incurred to reimburse an employee for, or to otherwise pay, expenses in connection with— (A) travel for the purpose of obtaining an abortion, or (B) any gender transition procedure for a minor child of the employee.
The term minor child means an individual who has not attained age 18.
Such term does not include— (I) services for treatment of a medically verifiable disorder of sex development
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Section 1 gives the proposal the short title “No Tax Breaks for Radical Corporate Activism Act.”
This Act may be cited as the No Tax Breaks for Radical Corporate Activism Act.
Section 2 would insert the deduction restriction into section 162 of the Internal Revenue Code. Its abortion-related restriction concerns expenses connected with travel to obtain an abortion; its gender-transition restriction concerns procedures for an employee’s child under 18.
Section 162 of the Internal Revenue Code of 1986 is amended by redesignating subsection (s) as subsection (t), and by inserting after subsection (r) the following new subsection:
No deduction shall be allowed under this chapter to an employer for any amount paid or incurred to reimburse an employee for, or to otherwise pay, expenses in connection with— (A) travel for the purpose of obtaining an abortion, or (B) any gender transition procedure for a minor child of the employee.
The term minor child means an individual who has not attained age 18.
The proposal defines a gender transition procedure by its purpose: medical or surgical services intended to alter sex-related physical characteristics for gender transition. It includes physician and hospital services, surgery, and prescribed drugs such as puberty blockers and hormones.
The term gender transition procedure means any medical or surgical service which seeks to alter or remove physiological or anatomical characteristics or features which are typical for the individual's biological sex, or to instill or create physiological or anatomical characteristics which resemble a sex different from the individual's birth sex, for the purpose of gender transition, including— (I) physician's services and inpatient and outpatient hospital services, including gender transition surgery, and (II) prescribed drugs related to gender transition, including puberty-blocking drugs, cross-sex hormones, or other mechanisms to promote the development of feminizing or masculinizing features (in the opposite sex).
Treatment of medically verifiable disorders of sex development would be excluded from the procedure definition. The listed categories include ambiguous sex characteristics and other physician-diagnosed disorders involving chromosome structure, hormone production, or hormone action, with genetic or biochemical testing required for the latter category.
Such term does not include— (I) services for treatment of a medically verifiable disorder of sex development, including— (aa) external biological sex characteristics which are irresolvably ambiguous, such as the presence of 46 XX chromosomes with virilization, 46 XY chromosomes with undervirilization, or both ovarian and testicular tissue, or (bb) other physician-diagnosed disorder of sexual development, with respect to which the physician has determined through genetic or biochemical testing that the individual does not have normal sex chromosome structure, sex steroid hormone production, or sex steroid hormone action for a biological male or biological female
Treatment of an infection, injury, disease, or disorder caused or worsened by a gender transition procedure would also be excluded. This exception would apply regardless of whether the original procedure complied with state and federal law or its expenses were deductible.
treatment of any infection, injury, disease, or disorder caused or exacerbated by the performance of any gender transition procedure, whether or not the gender transition procedure was performed in accordance with State and Federal law or whether not a deduction for expenses in connection with the gender transition procedure is allowable under this chapter.
For this restriction, the bill defines gender as the psychological, behavioral, social, and cultural aspects of being male or female. It defines gender transition as moving from identifying and living as a gender corresponding to a person’s biological sex to a different gender, potentially involving social, legal, or physical changes.
The term gender means the psychological, behavioral, social, and cultural aspects of being male or female.
The term gender transition means the process in which an individual goes from identifying with and living as a gender that corresponds to his or her biological sex to identifying with and living as a gender different from his or her biological sex, and may involve social, legal, or physical changes.
Gender transition surgery would include genital and non-genital surgery performed to assist a transition. That surgery definition would exclude services for a physical disorder, injury, or illness when a physician certifies that surgery is needed to prevent imminent death or impairment of a major bodily function.
The term gender transition surgery means any surgical service, including genital or non-genital surgery, performed for the purpose of assisting an individual with a gender transition.
Such term does not include any service performed because the individual suffers from a physical disorder, physical injury, or physical illness which would, as certified by a physician, place the individual in imminent danger of death or impairment of major bodily function unless surgery is performed.
The surgical examples include removal or reconstruction of reproductive organs and genital tissue, as well as breast or chest procedures, voice surgery, facial surgery, and other cosmetic procedures. The broader definition requires that surgery be performed to assist a gender transition.
The term gender transition surgery means any surgical service, including genital or non-genital surgery, performed for the purpose of assisting an individual with a gender transition.
The term genital surgery includes surgical procedures such as— (I) penectomy, orchiectomy, vaginoplasty, clitoroplasty, or vulvoplasty for biologically male patients, and (II) hysterectomy, ovariectomy, reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty, vaginectomy, scrotoplasty, or implantation of erection or testicular prostheses for biologically female patients.
The term non-genital surgery includes surgical procedures such as liposuction, lipofilling, voice surgery, and— (I) augmentation mammoplasty, facial feminization surgery, thyroid cartilage reduction, gluteal augmentation (whether implants or lipofilling), hair reconstruction, or various aesthetic procedures for biologically male patients, and (II) subcutaneous mastectomy, pectoral implants, or various aesthetic procedures for biologically female patients.
The puberty-blocker definition covers specified drugs that suppress sex-hormone production when used to delay or suppress puberty in children to assist a gender transition. The separate hormone definition covers testosterone or similar hormones given to biological females, and estrogen given to biological males, at doses the bill describes as much larger or more potent than naturally occurring levels.
The term puberty-blocking drugs means gonadotropin-releasing hormone (GnRH) analogues or other synthetic drugs used in biological males to stop luteinizing hormone secretion and therefore testosterone secretion, and synthetic drugs used in biological females to stop the production of estrogen and progesterone, when used to delay or suppress pubertal development in children for the purpose of assisting an individual with a gender transition.
The term cross-sex hormones means testosterone or other androgens given to biological females at doses which are profoundly larger or more potent than would normally occur naturally in healthy biological females, and estrogen given to biological males at doses which are profoundly larger or more potent than would normally occur naturally in healthy biological males.
The amendments would apply to tax years beginning after enactment. The provision does not specify a fixed calendar start date.
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
The supplied official-actions snapshot, updated June 10, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 11, 2025.
Source snapshot updated 2026-06-10T19:55:01Z. 2025-02-11: Referred to the House Committee on Ways and Means. 2025-02-11: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-11. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider was identified in the complete supplied introduced text. This conclusion does not establish what appears in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending earmark was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish the contents of accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The text contains narrow medical exceptions within the proposed tax restriction. These are part of the main policy; identifying them does not imply improper treatment or guarantee deductibility.
Employers paying for treatment of medically verifiable disorders of sex development would have those services excluded from the proposed gender-transition procedure restriction. This is a medical carve-out within the bill’s main tax policy.
No deduction shall be allowed under this chapter to an employer for any amount paid or incurred to reimburse an employee for, or to otherwise pay, expenses in connection with— (A) travel for the purpose of obtaining an abortion, or (B) any gender transition procedure for a minor child of the employee.
Such term does not include— (I) services for treatment of a medically verifiable disorder of sex development
Employers paying for treatment of complications caused or worsened by a gender transition procedure would have those treatments excluded from the procedure definition, even if the original procedure was unlawful or its expenses were not deductible.
No deduction shall be allowed under this chapter to an employer for any amount paid or incurred to reimburse an employee for, or to otherwise pay, expenses in connection with— (A) travel for the purpose of obtaining an abortion, or (B) any gender transition procedure for a minor child of the employee.
treatment of any infection, injury, disease, or disorder caused or exacerbated by the performance of any gender transition procedure, whether or not the gender transition procedure was performed in accordance with State and Federal law or whether not a deduction for expenses in connection with the gender transition procedure is allowable under this chapter.
A narrower exception within the surgery definition covers services needed to prevent imminent death or impairment of a major bodily function from a physical condition, as certified by a physician. It limits which surgeries fall within that definition for employers paying covered expenses.
No deduction shall be allowed under this chapter to an employer for any amount paid or incurred to reimburse an employee for, or to otherwise pay, expenses in connection with— (A) travel for the purpose of obtaining an abortion, or (B) any gender transition procedure for a minor child of the employee.
The term gender transition surgery means any surgical service, including genital or non-genital surgery, performed for the purpose of assisting an individual with a gender transition.
Such term does not include any service performed because the individual suffers from a physical disorder, physical injury, or physical illness which would, as certified by a physician, place the individual in imminent danger of death or impairment of major bodily function unless surgery is performed.
Full text preserved for this analysis. Legislative record snapshot: Jun 10, 2026. How PlainBill uses AI