New IDEA Act

This bill would change tax rules and hiring checks for employers. It says businesses cannot deduct (write off) wages paid to workers who are not authorized to work in the U.S. Wages include pay and non-cash benefits. If an employer uses E‑Verify and gets a confirmation that a worker is eligible, the employer can still deduct those wages. The IRS has to prove a violation, and it can’t start an audit only because an employer claimed this kind of deduction. If a deduction was taken in violation of the rule, the IRS has six years to assess the tax.

The bill also lets Social Security, Homeland Security, and Treasury share certain information to help identify unauthorized workers, and allows Treasury to share limited taxpayer identity information with those agencies for enforcement. Most parts take effect at enactment, and the tax-deduction changes apply to tax years starting after December 31, 2024. It also makes the E‑Verify program permanent, keeps participation voluntary, lets employers apply E‑Verify to current staff or certain locations, and allows job offers that are conditional on a final E‑Verify confirmation. Employers that follow E‑Verify rules get a presumption they did not knowingly keep unauthorized workers.

Key points

• Who is affected: Employers, current employees, and job applicants.
• What changes: No tax deduction for wages paid to unauthorized workers; safe harbor if E‑Verify confirms eligibility; more agency info‑sharing; E‑Verify made permanent and can be used for current staff and conditional job offers.
• When: Most provisions at enactment; tax-deduction rule applies to tax years beginning after 12/31/2024.