II 

117TH CONGRESS 

2D SESSION S. 4131 

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 

MAY 3, 2022 

Mr. RUBIO 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Tax Breaks for 

5 Radical Corporate Activism Act’’. 

6 SEC. 2. DENIAL OF DEDUCTION. 

7 (a) IN GENERAL.—Section 162 of the Internal Rev8 enue Code of 1986 is amended by redesignating subsection 


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•S 4131 IS

1 (s) as subsection (t), and by inserting after subsection (r) 

2 the following new subsection: 

3 ‘‘(s) DISALLOWANCE OF CERTAIN EXPENSES RELAT4 ING TO ABORTION OR CHILD GENDER TRANSITION.— 

5 ‘‘(1) IN GENERAL.—No deduction shall be al6 lowed under this chapter to an employer for any 

7 amount paid or incurred to reimburse an employee 

8 for, or to otherwise pay, expenses in connection 

9 with— 

10 ‘‘(A) travel for the purpose of obtaining an 

11 abortion, or 

12 ‘‘(B) any gender transition procedure for a 

13 minor child of the employee. 

14 ‘‘(2) DEFINITIONS.—For purposes of this sub15 section— 

16 ‘‘(A) GENDER TRANSITION PROCEDURE.— 

17 ‘‘(i) IN GENERAL.—The term ‘gender 

18 transition procedure’ means any medical or 

19 surgical service which seeks to alter or re20 move physiological or anatomical charac21 teristics or features which are typical for 

22 the individual’s biological sex, or to instill 

23 or create physiological or anatomical char24 acteristics which resemble a sex different 


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1 from the individual’s birth sex, for the pur2 pose of gender transition, including— 

3 ‘‘(I) physician’s services and in4 patient and outpatient hospital serv5 ices, including gender transition sur6 gery, and 

7 ‘‘(II) prescribed drugs related to 

8 gender transition, including puberty9 blocking drugs, cross-sex hormones, or 

10 other mechanisms to promote the de11 velopment of feminizing or 

12 masculinizing features (in the opposite 

13 sex). 

14 ‘‘(ii) EXCEPTIONS.—Such term does 

15 not include— 

16 ‘‘(I) services for treatment of a 

17 medically-verifiable disorder of sex de18 velopment, including— 

19 ‘‘(aa) external biological sex 

20 characteristics which are 

21 irresolvably ambiguous, such as 

22 presence of 46 XX chromosomes 

23 with virilization, 46 XY chro24 mosomes with undervirilization, 


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1 or both ovarian and testicular tis2 sue, or 

3 ‘‘(bb) other physician-diag4 nosed disorder of sexual develop5 ment, with respect to which the 

6 physician has determined 

7 through genetic or biochemical 

8 testing that the individual does 

9 not have normal sex chromosome 

10 structure, sex steroid hormone 

11 production, or sex steroid hor12 mone action for a biological male 

13 or biological female, or 

14 ‘‘(II) treatment of any infection, 

15 injury, disease, or disorder caused or 

16 exacerbated by the performance of 

17 any gender transition procedure, 

18 whether or not the gender transition 

19 procedure was performed in accord20 ance with State and Federal law or 

21 whether not a deduction for expenses 

22 in connection with the gender transi23 tion procedure is allowable under this 

24 chapter. 


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1 ‘‘(iii) GENDER.—The term ‘gender’ 

2 means the psychological, behavioral, social, 

3 and cultural aspects of being male or fe4 male. 

5 ‘‘(iv) GENDER TRANSITION.—The 

6 term ‘gender transition’ means the process 

7 in which an individual goes from identi8 fying with and living as a gender that cor9 responds to his or her biological sex to 

10 identifying with and living as a gender dif11 ferent from his or her biological sex, and 

12 may involve social, legal, or physical 

13 changes. 

14 ‘‘(v) GENDER TRANSITION SUR15 GERY.— 

16 ‘‘(I) IN GENERAL.—The term 

17 ‘gender transition surgery’ means any 

18 surgical service, including genital or 

19 non-genital surgery, performed for the 

20 purpose of assisting an individual with 

21 a gender transition. 

22 ‘‘(II) EXCEPTION.—Such term 

23 does not include any service per24 formed because the individual suffers 

25 from a physical disorder, physical inVerDate Sep 11 2014 22:01 May 04, 2022 Jkt 000000 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4131.IS S4131

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1 jury, or physical illness which would, 

2 as certified by a physician, place the 

3 individual in imminent danger of 

4 death or impairment of major bodily 

5 function unless surgery is performed. 

6 ‘‘(vi) GENITAL SURGERY.—The term 

7 ‘genital surgery’ includes surgical proce8 dures such as— 

9 ‘‘(I) penectomy, orchiectomy, 

10 vaginoplasty, clitoroplasty, or 

11 vulvoplasty for biologically male pa12 tients, and 

13 ‘‘(II) hysterectomy, ovariectomy, 

14 reconstruction of the fixed part of the 

15 urethra with or without a 

16 metoidioplasty or a phalloplasty, vagi17 nectomy, scrotoplasty, or implantation 

18 of erection or testicular prostheses for 

19 biologically female patients. 

20 ‘‘(vii) NON-GENITAL SURGERY.—The 

21 term ‘non-genital surgery’ includes surgical 

22 procedures such as liposuction, lipofilling, 

23 voice surgery, and— 

24 ‘‘(I) augmentation mammoplasty, 

25 facial feminization surgery, thyroid 


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1 cartilage reduction, gluteal augmenta2 tion (whether implants or lipofilling), 

3 hair reconstruction, or various aes4 thetic procedures for biologically male 

5 patients, and 

6 ‘‘(II) subcutaneous mastectomy, 

7 pectoral implants, or various aesthetic 

8 procedures for biologically female pa9 tients. 

10 ‘‘(viii) PUBERTY-BLOCKING DRUGS.— 

11 The term ‘puberty-blocking drugs’ means 

12 Gonadotropin-releasing hormone (GnRH) 

13 analogues or other synthetic drugs used in 

14 biological males to stop luteinizing hor15 mone secretion and therefore testosterone 

16 secretion, and synthetic drugs used in bio17 logical females to stop the production of 

18 estrogen and progesterone, when used to 

19 delay or suppress pubertal development in 

20 children for the purpose of assisting an in21 dividual with a gender transition. 

22 ‘‘(ix) CROSS-SEX HORMONES.—The 

23 term ‘cross-sex hormones’ means testos24 terone or other androgens given to biologi25 cal females at doses which are profoundly 


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1 larger or more potent than would normally 

2 occur naturally in healthy biological fe3 males, and estrogen given to biological 

4 males at doses which are profoundly larger 

5 or more potent than would normally occur 

6 naturally in healthy biological males. 

7 ‘‘(B) MINOR CHILD.—The term ‘minor 

8 child’ means an individual who has not attained 

9 age 18.’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

Æ 


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