Sponsor
Brian Jeffrey Mast
Representative · R-FL
Representative · R-FL
The bill tightens tax rules to deny deductions for employer reimbursements for abortion travel and certain minor gender‑affirming care—improving statutory clarity and raising some revenue but increasing costs for employers and families, likely reducing employer benefits and access to care for marginalized groups.
Tax-code language is clarified by defining which procedures and treatments are excluded from deduction, reducing ambiguity for IRS enforcement and helping employers and small businesses understand compliance obligations.
Employers who reimburse employees for abortion travel or certain minor gender‑affirming care will face higher taxable income because those reimbursements are nondeductible, which could modestly increase corporate tax revenue.
Employers who currently offer reimbursements for abortion travel or minor gender‑affirming care will face higher after‑tax costs and therefore may reduce or eliminate those benefits, lowering employee access to employer-provided financial support.
Parents of minors (and the minors themselves) are likely to face higher out‑of‑pocket costs for gender‑affirming medical care if employer reimbursements are curtailed, reducing access to care for transgender youth.
The law singles out reproductive and gender‑affirming care for adverse tax treatment, creating a disparate impact on women and transgender people and raising concerns about restrictions on access to these types of health care.
Based on analysis of 2 sections of legislative text.
Denies business tax deductions for employer payments/reimbursements for employee travel to obtain abortions and for gender‑transition procedures for employees' minor children.
Official title: To amend the Internal Revenue Code of 1986 to deny the trade or business expense deduction for the reimbursement of employee costs of child gender transition procedure or travel to obtain an abortion.
Introduced February 11, 2025 by Brian Jeffrey Mast · Last progress February 11, 2025
Prohibits businesses from taking a federal tax deduction for amounts paid or reimbursed to employees for travel to obtain an abortion or for gender‑transition procedures for an employee's minor child. It adds a new rule to the Internal Revenue Code disallowing those business expense deductions, defines covered terms (including lists of specific surgeries, puberty blockers, and cross‑sex hormones), and creates narrow medical exceptions for certain intersex conditions and life‑saving procedures. The change applies to taxable years beginning after enactment.