Sec. 3. Denial of deduction for attempting to influence employees with respect to labor organizations or labor organization activities

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Section 162(e)(1) of the Internal Revenue Code of 1986 is amended by striking or at the end of subparagraph (C), by striking the period at the end of subparagraph

(D)and inserting , or , and by adding at the end the following new subparagraph: any attempt to influence the taxpayer's employees with respect to labor organizations or labor organization activities, including with respect to the opinion of such employees regarding such organizations or activities. . Section 162(e) of the Internal Revenue Code of 1986 is amended by redesignating paragraph

(6)as paragraph

(7)and by inserting after paragraph

(5)the following new paragraph: For purposes of this subsection— The term labor organization has the meaning given such term in section 3 of the Labor-Management Reporting and Disclosure Act of 1959 ( 29 U.S.C. 402 ). The term labor organization activity includes labor organization elections, labor disputes, and collective actions. For purposes of clause (i)— The term collective action means any action, including collective bargaining, described in section 7 of the 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. ). 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 ). 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 ). . Section 162(e)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: For purposes of paragraph (1)(E), amounts paid or incurred in connection with attempting to influence the taxpayer's employees with respect to labor organizations or labor organization activities include— any amount paid or incurred by the taxpayer in connection with an action that results in— a complaint issued under section 10 of the National Labor Relations Act ( 29 U.S.C. 160 ) against the taxpayer for an unfair labor practice under section 8(a) of such Act ( 29 U.S.C. 158(a) ), unless an order of the National Labor Relations Board related to such complaint is set aside in full in accordance with subsection

(e)or

(f)of section 10 of such Act, a settlement offer related to an investigation by the National Labor Relations Board of a charge of an unfair labor practice under section 8(a) of such Act ( 29 U.S.C. 158(a) ) that results in a settlement of such charge without issuance of a complaint under section 10 of such Act ( 29 U.S.C. 160 ), or a finding of interference, influence, or coercion by a Federal court under section 2 of the Railway Labor Act ( 45 U.S.C. 152 ), any amount paid or incurred (including wages) in producing, conducting, or attending any meeting or training— which includes employees of the taxpayer who are or who could become bargaining unit members or members of a craft or class under the Railway Labor Act, and at which labor organizations or a labor organization activity is discussed, and any amount which is required to be reported under the Labor-Management Reporting and Disclosure Act of 1959 ( 29 U.S.C. 401 et seq. ). The following amounts shall not be treated as amounts paid or incurred in connection with attempting to influence the taxpayer's employees with respect to labor organizations or labor organization activities under paragraph (1)(E): Amounts paid or incurred for communications or negotiations directly with the designated or selected representative of the employees of the taxpayer described in section 9(a) of the National Labor Relations Act ( 29 U.S.C. 159(a) ) or under the Railway Labor Act ( 45 U.S.C. 151 et seq. ). Amounts paid or incurred for communications directly with shareholders, as may be required under section 13 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m ). Amounts paid or incurred for communications or consultations by the taxpayer in the process of voluntarily recognizing a labor organization as a representative in accordance with section 9 of the National Labor Relations Act ( 29 U.S.C. 159 ). Amounts paid or incurred for communications or consultations related to the operation of a labor-management partnership described in a collective bargaining agreement in effect between a representative of employees of the taxpayer and the taxpayer. Amounts paid or incurred for communications or consultations related to the operation of a grievance procedure described in a collective bargaining agreement in effect between a representative of employees of the taxpayer and the taxpayer. Amounts paid or incurred by a labor organization. Amounts paid or incurred for communication materials, including visual or audio media, required to be posted for, or provided to, employees of the taxpayer by law, including under the National Labor Relations Act ( 29 U.S.C. 151 et seq. ) or the Railway Labor Act ( 45 U.S.C. 151 et seq. ). . Subpart A of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by inserting after section 6039J the following new section: Any employer who attempts to influence the employer's employees with respect to labor organizations or labor organization activities as described in section 162(e)(1)(E) shall file a return (at such time and in such manner as the Secretary may by regulations prescribe, not more frequently than each quarter in which such an attempt occurs and not less frequently than each year in which such an attempt occurs) which includes the information described in subsection (b). Information required under subsection

(a)shall include— the dates that such activities described in subsection

(a)took place, a statement indicating whether the activity was an activity described in item (aa), (bb), or

(cc)of section 162(e)(4)(D)(i)(I), the amounts paid or incurred for such activities, a copy of any disclosures which are required to be reported under the Labor-Management Reporting and Disclosure Act of 1959 ( 29 U.S.C. 401 et seq. ), and such other information as the Secretary may prescribe. . Subparagraph

(B)of section 6724(d)(1) of such Code is amended— by striking the comma at the end of clause (xxvii), as added by the Infrastructure Investment and Jobs Act, and inserting , or , and by adding at the end the following new clause: section 6039K (relating to information with respect to certain employer activities relating to labor organizations), and . The table of sections for subpart A of part III of subchapter A of chapter 61 of such Code is amended by inserting after the item relating to section 6039J the following new item: Sec. 6039K. Information with respect to certain employer activities relating to labor organizations. . The heading for subsection

(e)of section 162 of the Internal Revenue Code of 1986 is amended by striking and inserting and political expenditures . , political expenditures, and labor organization expenditures The heading of subparagraph

(C)of section 162(e)(4) of such Code is amended by striking and inserting and political activities . , political, and labor organization activities The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

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