Sponsors
The bill removes tax deductions for certain employer-funded travel and minor gender‑transition care to prevent indirect taxpayer subsidy and simplify deduction rules, but likely reduces access and raises costs for reproductive and gender‑related care while increasing compliance burdens for employers.
Taxpayers who oppose employer-funded abortion travel or minor gender‑transition care will no longer indirectly subsidize those services through employer tax deductions.
Small-business owners and employers that offer broad travel or medical reimbursement plans face narrower allowable deductions, which can simplify taxable benefit accounting.
Employees—particularly women—who rely on employer-funded travel reimbursements to obtain time‑sensitive reproductive care may lose that support if employers can no longer deduct such reimbursements, reducing access to abortion services.
Families with minors seeking gender‑affirming medical care and transgender youth may face higher out‑of‑pocket costs, reduced coverage, and increased stigma if employer reimbursements for such care become nondeductible or are cut.
Employers may avoid offering or narrow flexible health and benefit plans to limit exposure to nondeductibility rules, reducing employee access to reproductive and gender‑related health supports more broadly.
Based on analysis of 2 sections of legislative text.
Disallows business tax deductions for employer-paid or reimbursed abortion travel and for gender-transition procedures for employees' minor children.
Introduced February 11, 2025 by Brian Jeffrey Mast · Last progress February 11, 2025
Prohibits employers from claiming business tax deductions for amounts they pay or reimburse to employees for travel to obtain an abortion and for any gender-transition medical care for an employee's minor child. It defines covered "gender transition procedures" (including physician services, inpatient/outpatient care, specified surgeries, and prescribed drugs such as puberty blockers and cross-sex hormones) and lists narrow medical exclusions; the change applies to taxable years beginning after enactment.