No Taxpayer Funding for Abortion Act

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``No Taxpayer 
Funding for Abortion Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--PROHIBITING FEDERALLY FUNDED ABORTIONS

Sec. 101. Prohibiting taxpayer funded abortions.
Sec. 102. Amendment to table of chapters.
   TITLE II--ELIMINATION OF CERTAIN TAX BENEFITS RELATING TO ABORTION

Sec. 201. Deduction for medical expenses not allowed for abortions.
Sec. 202. Disallowance of refundable credit for coverage under 
                            qualified health plan which provides 
                            coverage for abortion.
Sec. 203. Disallowance of small employer health insurance expense 
                            credit for plan which includes coverage for 
                            abortion.
Sec. 204. Distributions for abortion expenses from certain accounts and 
                            arrangements included in gross income.

            TITLE I--PROHIBITING FEDERALLY FUNDED ABORTIONS

SEC. 101. PROHIBITING TAXPAYER FUNDED ABORTIONS.

    Title 1, United States Code is amended by adding at the end the 
following new chapter:

           ``CHAPTER 4--PROHIBITING TAXPAYER FUNDED ABORTIONS

``Sec.
``301. Prohibition on funding for abortions.
``302. Prohibition on funding for health benefits plans that cover 
                            abortion.
``303. Limitation on Federal facilities and employees.
``304. Construction relating to separate coverage.
``305. Construction relating to the use of non-Federal funds for health 
                            coverage.
``306. Non-preemption of other Federal laws.
``307. Construction relating to complications arising from abortion.
``308. Treatment of abortions related to rape, incest, or preserving 
                            the life of the mother.
``309. Application to District of Columbia.
``Sec. 301. Prohibition on funding for abortions
    ``No funds authorized or appropriated by Federal law, and none of 
the funds in any trust fund to which funds are authorized or 
appropriated by Federal law, shall be expended for any abortion.
``Sec. 302. Prohibition on funding for health benefits plans that cover 
              abortion
    ``None of the funds authorized or appropriated by Federal law, and 
none of the funds in any trust fund to which funds are authorized or 
appropriated by Federal law, shall be expended for health benefits 
coverage that includes coverage of abortion.
``Sec. 303. Limitation on Federal facilities and employees
    ``No health care service furnished--
            ``(1) by or in a health care facility owned or operated by 
        the Federal Government; or
            ``(2) by any physician or other individual employed by the 
        Federal Government to provide health care services within the 
        scope of the physician's or individual's employment,
may include abortion.
``Sec. 304. Construction relating to separate coverage
    ``Nothing in this chapter shall be construed as prohibiting any 
individual, entity, or State or locality from purchasing separate 
abortion coverage or health benefits coverage that includes abortion so 
long as such coverage is paid for entirely using only funds not 
authorized or appropriated by Federal law and such coverage shall not 
be purchased using matching funds required for a federally subsidized 
program, including a State's or locality's contribution of Medicaid 
matching funds.
``Sec. 305. Construction relating to the use of non-Federal funds for 
              health coverage
    ``Nothing in this chapter shall be construed as restricting the 
ability of any non-Federal health benefits coverage provider from 
offering abortion coverage, or the ability of a State or locality to 
contract separately with such a provider for such coverage, so long as 
only funds not authorized or appropriated by Federal law are used and 
such coverage shall not be purchased using matching funds required for 
a federally subsidized program, including a State's or locality's 
contribution of Medicaid matching funds.
``Sec. 306. Non-preemption of other Federal laws
    ``Nothing in this chapter shall repeal, amend, or have any effect 
on any other Federal law to the extent such law imposes any limitation 
on the use of funds for abortion or for health benefits coverage that 
includes coverage of abortion, beyond the limitations set forth in this 
chapter.    
``Sec. 307. Construction relating to complications arising from 
              abortion
    ``Nothing in this chapter shall be construed to apply to the 
treatment of any infection, injury, disease, or disorder that has been 
caused by or exacerbated by the performance of an abortion. This rule 
of construction shall be applicable without regard to whether the 
abortion was performed in accord with Federal or State law, and without 
regard to whether funding for the abortion is permissible under section 
308.
``Sec. 308. Treatment of abortions related to rape, incest, or 
              preserving the life of the mother
    ``The limitations established in sections 301, 302, and 303 shall 
not apply to an abortion--
            ``(1) if the pregnancy is the result of an act of rape or 
        incest; or
            ``(2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness that would, as 
        certified by a physician, place the woman in danger of death 
        unless an abortion is performed, including a life-endangering 
        physical condition caused by or arising from the pregnancy 
        itself.
``Sec. 309. Application to District of Columbia
    ``In this chapter:
            ``(1) Any reference to funds appropriated by Federal law 
        shall be treated as including any amounts within the budget of 
        the District of Columbia that have been approved by Act of 
        Congress pursuant to section 446 of the District of Columbia 
        Home Rule Act (or any applicable successor Federal law).
            ``(2) The term `Federal Government' includes the government 
        of the District of Columbia.''.

SEC. 102. AMENDMENT TO TABLE OF CHAPTERS.

    The table of chapters for title 1, United States Code, is amended 
by adding at the end the following new item:

``4. Prohibiting taxpayer funded abortions..................     301''.

   TITLE II--ELIMINATION OF CERTAIN TAX BENEFITS RELATING TO ABORTION

SEC. 201. DEDUCTION FOR MEDICAL EXPENSES NOT ALLOWED FOR ABORTIONS.

    (a) In General.--Section 213 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(g) Amounts Paid for Abortion Not Taken Into Account.--
            ``(1) In general.--An amount paid during the taxable year 
        for an abortion shall not be taken into account under 
        subsection (a).
            ``(2) Exceptions.--Paragraph (1) shall not apply to--
                    ``(A) an abortion--
                            ``(i) in the case of a pregnancy that is 
                        the result of an act of rape or incest, or
                            ``(ii) in the case where a woman suffers 
                        from a physical disorder, physical injury, or 
                        physical illness that would, as certified by a 
                        physician, place the woman in danger of death 
                        unless an abortion is performed, including a 
                        life-endangering physical condition caused by 
                        or arising from the pregnancy, and
                    ``(B) the treatment of any infection, injury, 
                disease, or disorder that has been caused by or 
                exacerbated by the performance of an abortion.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 202. DISALLOWANCE OF REFUNDABLE CREDIT FOR COVERAGE UNDER 
              QUALIFIED HEALTH PLAN WHICH PROVIDES COVERAGE FOR 
              ABORTION.

    (a) In General.--Subparagraph (A) of section 36B(c)(3) of the 
Internal Revenue Code of 1986 is amended by inserting before the period 
at the end the following: ``or any health plan that includes coverage 
for abortions (other than any abortion or treatment described in 
section 213(g)(2))''.
    (b) Option To Purchase or Offer Separate Coverage or Plan.--
Paragraph (3) of section 36B(c) of such Code is amended by adding at 
the end the following new subparagraph:
                    ``(C) Separate abortion coverage or plan allowed.--
                            ``(i) Option to purchase separate coverage 
                        or plan.--Nothing in subparagraph (A) shall be 
                        construed as prohibiting any individual from 
                        purchasing separate coverage for abortions 
                        described in such subparagraph, or a health 
                        plan that includes such abortions, so long as 
                        no credit is allowed under this section with 
                        respect to the premiums for such coverage or 
                        plan.
                            ``(ii) Option to offer coverage or plan.--
                        Nothing in subparagraph (A) shall restrict any 
                        non-Federal health insurance issuer offering a 
                        health plan from offering separate coverage for 
                        abortions described in such subparagraph, or a 
                        plan that includes such abortions, so long as 
                        premiums for such separate coverage or plan are 
                        not paid for with any amount attributable to 
                        the credit allowed under this section (or the 
                        amount of any advance payment of the credit 
                        under section 1412 of the Patient Protection 
                        and Affordable Care Act).''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after December 31, 2013.

SEC. 203. DISALLOWANCE OF SMALL EMPLOYER HEALTH INSURANCE EXPENSE 
              CREDIT FOR PLAN WHICH INCLUDES COVERAGE FOR ABORTION.

    (a) In General.--Subsection (h) of section 45R of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``Any term'' and inserting the following:
            ``(1) In general.--Any term'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Exclusion of health plans including coverage for 
        abortion.--The terms `qualified health plan' and `health 
        insurance coverage' shall not include any health plan or 
        benefit that includes coverage for abortions (other than any 
        abortion or treatment described in section 213(g)(2)).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 204. DISTRIBUTIONS FOR ABORTION EXPENSES FROM CERTAIN ACCOUNTS AND 
              ARRANGEMENTS INCLUDED IN GROSS INCOME.

    (a) Flexible Spending Arrangements Under Cafeteria Plans.--Section 
125 of the Internal Revenue Code of 1986 is amended by redesignating 
subsections (k) and (l) as subsections (l) and (m), respectively, and 
by inserting after subsection (j) the following new subsection:
    ``(k) Abortion Reimbursement From Flexible Spending Arrangement 
Included in Gross Income.--Notwithstanding section 105(b), gross income 
shall include any reimbursement for expenses incurred for an abortion 
(other than any abortion or treatment described in section 213(g)(2)) 
from a health flexible spending arrangement provided under a cafeteria 
plan. Such reimbursement shall not fail to be a qualified benefit for 
purposes of this section merely as a result of such inclusion in gross 
income.''.
    (b) Archer MSAs.--Paragraph (1) of section 220(f) of such Code is 
amended by inserting before the period at the end the following: ``, 
except that any such amount used to pay for an abortion (other than any 
abortion or treatment described in section 213(g)(2)) shall be included 
in the gross income of such holder''.
    (c) HSAs.--Paragraph (1) of section 223(f) of such Code is amended 
by inserting before the period at the end the following: ``, except 
that any such amount used to pay for an abortion (other than any 
abortion or treatment described in section 213(g)(2)) shall be included 
in the gross income of such beneficiary''.
    (d) Effective Dates.--
            (1) FSA reimbursements.--The amendment made by subsection 
        (a) shall apply to expenses incurred with respect to taxable 
        years beginning after the date of the enactment of this Act.
            (2) Distributions from savings accounts.--The amendments 
        made by subsection (b) and (c) shall apply to amounts paid with 
        respect to taxable years beginning after the date of the 
        enactment of this Act.

Summary: No Taxpayer Funding for Abortion Act - Prohibits the expenditure of funds authorized or appropriated by federal law or funds in any trust fund to which funds are authorized or appropriated by federal law (federal funds) for any abortion. Prohibits federal funds from being used for any health benefits coverage that includes coverage of abortion. (Currently, federal funds cannot be used for abortion services and plans receiving federal funds must keep federal funds segregated from any funds for abortion services.) Prohibits the inclusion of abortion in any health care service furnished by a federal or District of Columbia health care facility or by any physician or other individual employed by the federal government or the District. Excludes an abortion from such prohibitions if: (1) the pregnancy is the result of rape or incest; or (2) the woman suffers from a physical disorder, injury, or illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would place her in danger of death unless an abortion is performed, as certified by a physician.  Applies such prohibitions to District of Columbia funds. Amends the Internal Revenue Code to disqualify, for purposes of the tax deduction for medical expenses, any amounts paid for an abortion.  Excludes from the definition of &quot;qualified health plan&quot; after December 31, 2013, for purposes of the refundable tax credit for premium assistance for such plans, any plan that includes coverage for abortion. Excludes from the definitions of &quot;qualified health plan&quot; and &quot;health insurance coverage,&quot; for purposes of the tax credit for small employer health insurance expenses, any health plan or benefit that includes coverage for abortions. Includes any reimbursements or distributions to pay for an abortion in the gross income of participants in flexible spending arrangements under a tax-exempt cafeteria plan, Archer Medical Savings Accounts (MSAs), and health savings accounts (HSAs). Exempts from the application of such tax provisions: (1) abortions for pregnancies resulting from rape or incest or in cases where a woman suffers from a physical disorder, injury, or illness that would, as certified by a physician, endanger her life if an abortion were not performed; and (2) the treatment of any infection, injury, disease, or disorder that was caused by or exacerbated by the performance of an abortion.