H.R. 2692: No Tax Breaks for Union Busting (NTBUB) Act
Sponsor
Donald Norcross
Democrat · NJ-1
Bill Progress
Latest Action · Apr 7, 2025
Referred to the House Committee on Ways and Means.
Companies shouldn't get tax breaks for anti-union campaigns
Why it matters
The bill's findings cite $340 million a year spent on outside consultants to sway workers during union fights. H.R. 2692 would stop employers from writing off much of that spending and penalize non-reporting by as much as $100,000.
H.R. 2692 would deny tax deductions for money employers spend trying to influence workers about unions and collective action. That includes not just consultant fees, but in many cases wages, admin costs, meetings, trainings, and certain settlement-related costs tied to labor disputes.
The bill is especially broad around workplace meetings. If employees who are or could become part of a bargaining unit attend a meeting or training where union issues are discussed, the employer's related costs could become non-deductible.
It also creates a reporting system. Employers and outside firms doing covered work for them would have to tell the IRS what activity happened, when it happened, and how much was spent. If they do not report it, penalties start at $10,000 and can rise based on workforce size, with a maximum of $100,000.
The bill does not treat every labor-related expense the same way. It keeps deductions for direct bargaining, grievance procedures, voluntary recognition work, certain labor-management committees, required workplace notices, and some shareholder communications.
H.R. 2692 Bill Summary
What H.R. 2692 actually does.
Anti-union campaign costs lose their tax write-off
Employers could no longer deduct expenses for trying to influence workers about unions or collective action. The bill covers efforts aimed at shaping employee opinions, not just formal consultant contracts.
Mandatory workplace meetings get pulled into the tax net
If a company holds a meeting or training with current or potential bargaining-unit workers and union topics are discussed, related costs could become non-deductible.
Settlement and labor-law dispute costs can count too
The bill reaches certain costs connected to unfair labor practice complaints, settlement offers during labor board investigations, and some court findings under railway and airline labor law.
Consultants and employers both have to report spending
Covered activity would have to be disclosed to the IRS, including dates, activity type, amounts paid, and related labor-reporting documents when required.
Penalties can scale up fast
Failure to report triggers a penalty equal to the greater of $10,000 or $1,000 times the number of full-time equivalent employees. If the failure continues after notice, added penalties can build until they hit a $100,000 cap.
Regular bargaining activity stays deductible
The bill keeps tax deductions for direct negotiations with employee representatives, grievance procedures, voluntary recognition efforts, some labor-management committees, required postings, and certain shareholder communications.
Who benefits from H.R. 2692?
Workers deciding whether to unionize
If your workplace is in the middle of an organizing drive, the bill aims to make employer pressure campaigns more expensive. The bill's findings cite unfair labor practice charges in about 4 in 10 union elections in 2016-2017.
Unions and worker organizing committees
Employer spending meant to sway workers would lose a tax benefit, which could reduce the financial advantage companies have during organizing fights.
Employees in larger bargaining units
The bill's findings say unfair labor practice charges show up in more than 54% of elections involving bargaining units of 61 employees or more, suggesting the measure is aimed at higher-conflict organizing campaigns.
Taxpayers who do not want anti-union activity subsidized
Congress says the tax code should not subsidize employer efforts to influence workers' choices about collective bargaining and labor representation.
Who is affected by H.R. 2692?
Employers that hire union-avoidance consultants
If a company pays outside firms to shape worker views about unions, those payments could lose their deduction and trigger new reporting duties.
HR, legal, and finance teams
They would need to track covered meetings, training sessions, consultant work, settlement-related costs, and disclosures closely enough to report them on tax filings.
Large employers running internal anti-union campaigns
Because the bill includes indirect costs like wages and administrative expenses, the tax impact could be larger than just the consultant invoice.
Outside consultants and labor-relations firms
Anyone doing covered work for an employer would face separate IRS reporting requirements tied to the client, dates, type of activity, and costs.
HR2692 Legislative Journey
House: Committee Action
Apr 7, 2025
Referred to the House Committee on Ways and Means.
About the Sponsor
Donald Norcross
Democrat, New Jersey's 1st congressional district · 12 years in Congress
Committees: Armed Services, Education and Workforce
View full profile →
Cosponsors (134)
All 134 cosponsors are Democrats. Cosponsors represent 34 states: Arizona, California, Colorado, and 31 more.
Brendan Boyle
Democrat · PA
Judy Chu
Democrat · CA
Adam Smith
Democrat · WA
Al Green
Democrat · TX
Alexandria Ocasio-Cortez
Democrat · NY
Alma Adams
Democrat · NC
Angie Craig
Democrat · MN
April McClain Delaney
Democrat · MD
Becca Balint
Democrat · VT
Betty McCollum
Democrat · MN
Bill Foster
Democrat · IL
Brad Sherman
Democrat · CA
Cosponsor Coverage Map
Committee Sponsors
Ways and Means Committee
13 of 45 committee members cosponsored
6 Democrats across this committee haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 2692 change?
3 changes
Sections Amended
Section 162(e) of Internal Revenue Code of 1986
redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: ``(6) Labor organizations and labor organization activity defined
Section 7 of National Labor Relations Act (29 U.S.C. 157) or any action that is a right of employees or labor organizations under the Railway Labor Act (45 U.S.C. 151 et seq.). ``(II) Labor dispute.--The term `labor dispute' has the meaning given such term under section 3 of the Labor- Management Reporting and Disclosure Act of 1959 (29 U.S.C. 402). ``(III) Labor organization election.--The term `labor organization election' means any election described in section 9 of the National Labor Relations Act (29 U.S.C. 159) or section 2 of the Railway Labor Act (45 U.S.C. 152).''. (c) Special Rules.-- (1) In general.--Section 162(e)(4) of the Internal Revenue Code of 1986
adding at the end the following new subparagraph: ``(D) Expenses relating to labor organizations or labor organization activities
Section 162 of Internal Revenue Code of 1986
striking ``and Political Expenditures'' and inserting ``, Political Expenditures, and Labor Organization Expenditures''
H.R. 2692 Quick Facts
- Committee
- Ways and Means
- Chamber
- House
- Policy
- Taxation
- Introduced
- Apr 7, 2025
Referred to the House Committee on Ways and Means.
Apr 7, 2025
Official Sources
Official bill page with text, status, sponsors, and actions for the No Tax Breaks for Union Busting Act.
This is the Internal Revenue Code section the bill amends to deny deductions for covered anti-union spending.
The bill creates new IRS reporting requirements, and IRS forms and instructions would likely be the vehicle for employer and consultant disclosures.
Explains employee organizing rights under the National Labor Relations Act, which the bill repeatedly references.
Official U.S. Code chapter for the National Labor Relations Act sections cited in the bill, including employee rights and election provisions.
Official U.S. Code chapter for the Railway Labor Act, which the bill also uses to define covered labor organization activities.
H.R. 2692 Common Questions
What does H.R. 2692 actually do?
It would stop employers from deducting many costs tied to trying to influence workers about unions or collective action, and it would require new IRS reporting for that spending.
Does H.R. 2692 ban anti-union consultants?
No. Employers could still hire them. H.R. 2692 changes the tax treatment by denying deductions for covered spending and requiring consultants to report their work to the IRS.
Would captive-audience meetings still be tax-deductible?
Often no. If a meeting or training includes workers who are or could become part of a bargaining unit and union issues are discussed, the related costs could become non-deductible.
What expenses could still be deducted under H.R. 2692?
Direct bargaining with employee representatives, grievance procedures, voluntary recognition work, certain labor-management committees, required notices, and some shareholder communications would still be deductible.
How much are the reporting penalties?
They start at the greater of $10,000 or $1,000 per full-time equivalent employee. If the failure continues after notice, added penalties can build up to $100,000 total.
Do outside consultants have to file with the IRS too?
Yes. If they conduct covered activity for an employer, they would have to file a return identifying the client, the dates, the type of activity, and the costs involved.
Does H.R. 2692 only apply when an employer breaks labor law?
No. It covers some unlawful conduct, but it also reaches lawful efforts to influence workers, including certain meetings, training sessions, and consultant-driven campaigns.
When would H.R. 2692 take effect?
Not immediately. Treasury would get 240 days after enactment to issue rules, and the new tax treatment would apply to tax years beginning after that.
Based on H.R. 2692 bill text
H.R. 2692 Bill Text
“To amend the Internal Revenue Code of 1986 to end the tax subsidy for employer efforts to influence their workers’ exercise of their rights around labor organizations and engaging in collective action.”
Source: U.S. Government Publishing Office
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