New IDEA Act
Sponsored By: Representative Gill (TX)
Introduced
Summary
This bill would bar tax deductions for wages paid to unauthorized aliens. It also creates new enforcement tools and expands interagency data sharing and E-Verify safe harbors to identify and deter those wages.
Show full summary
- Employers: Wages paid to workers defined as unauthorized under immigration law would not be deductible unless the employer uses the E-Verify employment eligibility program and obtains a proper confirmation. The bill also opens a six-year window for assessment or collection when the deduction is improperly claimed.
- Workers: Agencies would share more records that can identify unauthorized workers, including no-match letters and the Social Security earnings suspense file, raising the visibility of pay records to immigration and tax authorities.
- Taxpayers and audits: The Treasury must prove in any examination that wages were paid to an unauthorized alien before denying the deduction. The bill bars audits that are opened solely because a taxpayer claimed this deduction.
- Agencies and records: The Social Security Administration, the Department of Homeland Security, and the Treasury would run a joint information-sharing program and Treasury disclosure and recordkeeping rules would be changed to support enforcement.
- Timing: Most tax changes would apply to taxable years beginning after December 31, 2024.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 2 costs, 1 mixed.
No tax write-off for unauthorized worker wages
If enacted, businesses would not be able to deduct wages paid to unauthorized workers. This would start for tax years beginning after December 31, 2024. Wages would include cash pay and the value of noncash benefits. Employers who use E‑Verify and get confirmation would have a safe harbor. The IRS could assess or start collection up to six years after filing, must prove a worker was unauthorized, and could not open an audit solely for claiming this deduction.
More data sharing on unauthorized employment
If enacted, Social Security, Homeland Security, and Treasury would set up a data‑sharing program to spot unauthorized work. Shared data could include no‑match letters, the earnings suspense file, and tax enforcement records tied to disallowed wage deductions. Treasury could share employer and worker taxpayer identity information with SSA or DHS when requested for enforcement. Only identity information would be shared. The immigration law text would be updated to reference the new tax rule, aligning enforcement.
Permanent E-Verify and new hiring rules
If enacted, E‑Verify would be made permanent. Any employer could choose to use it and decide if checks cover all hires, all employees, or certain locations. Employers could make job offers conditional on a final E‑Verify confirmation, and would run hiring checks after the date of hire. Employers could also choose checks tied to continued employment in the United States. Compliant employers would get a rebuttable presumption they did not violate hiring rules. These changes would take effect on enactment.
Sponsors & CoSponsors
Sponsor
Gill (TX)
TX • R
Cosponsors
Harris (NC)
NC • R
Sponsored 6/4/2025
Perry
PA • R
Sponsored 6/4/2025
Mace
SC • R
Sponsored 6/4/2025
Biggs (SC)
SC • R
Sponsored 6/4/2025
Miller (IL)
IL • R
Sponsored 6/5/2025
Rulli
OH • R
Sponsored 6/25/2025
Nehls
TX • R
Sponsored 6/4/2025
McClintock
CA • R
Sponsored 6/4/2025
Gosar
AZ • R
Sponsored 6/4/2025
Boebert
CO • R
Sponsored 6/4/2025
Weber (TX)
TX • R
Sponsored 6/4/2025
Norman
SC • R
Sponsored 6/4/2025
Roy
TX • R
Sponsored 6/4/2025
Crane
AZ • R
Sponsored 6/4/2025
Moore (AL)
AL • R
Sponsored 6/4/2025
Roll Call Votes
No roll call votes available for this bill.
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