[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 187 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 187

    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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 31, 2023

 Mr. Rubio (for himself and Mr. Daines) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Tax Breaks for Radical Corporate 
Activism Act of 2023''.

SEC. 2. DENIAL OF DEDUCTION.

    (a) In General.--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:
    ``(s) Disallowance of Certain Expenses Relating to Abortion or 
Child Gender Transition.--
            ``(1) In general.--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.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Gender transition procedure.--
                            ``(i) In general.--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).
                            ``(ii) Exceptions.--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 
                                        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, or
                                    ``(II) 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.
                            ``(iii) Gender.--The term `gender' means 
                        the psychological, behavioral, social, and 
                        cultural aspects of being male or female.
                            ``(iv) Gender transition.--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.
                            ``(v) Gender transition surgery.--
                                    ``(I) In general.--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.
                                    ``(II) Exception.--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.
                            ``(vi) Genital surgery.--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.
                            ``(vii) Non-genital surgery.--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.
                            ``(viii) Puberty-blocking drugs.--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.
                            ``(ix) Cross-sex hormones.--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.
                    ``(B) Minor child.--The term `minor child' means an 
                individual who has not attained age 18.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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