H.R. 1208 — No Tax Breaks for Radical Corporate Activism Act

This section establishes the short title of the Act as the “No Tax Breaks for Radical Corporate Activism Act.”

This section disallows an employer’s deduction under section 162 of the Internal Revenue Code of 1986 for amounts paid or incurred to reimburse an employee for, or otherwise pay, expenses related to (1) travel to obtain an abortion or (2) any gender transition procedure for the employee’s minor child, defined as a child under age 18. As background, section 162 generally allows businesses to deduct ordinary and necessary trade or business expenses; this provision creates a new exception for these specified expenses. It defines “gender transition procedure” to include certain medical, surgical, and drug treatments used to alter characteristics associated with an individual’s biological sex, while excluding treatment for medically verifiable disorders of sex development and treatment of infections, injuries, diseases, or disorders caused or worsened by a gender transition procedure. It also defines related terms, including “gender,” “gender transition,” “gender transition surgery,” “genital surgery,” “non-genital surgery,” “puberty-blocking drugs,” and “cross-sex hormones.” The amendment applies to taxable years beginning after the date of enactment.