Texas Bill Would Give Tax Break to Religious Employers Who Object to Contraceptive Coverage Rules

January 28, 2013 — Texas lawmakers on Thursday filed a bill (HB 649) in the state House that would give a tax break to secular businesses whose religious owners object to complying with the federal contraceptive coverage rules, the Texas Tribune reports (Aaronson, Texas Tribune, 1/24).

The rules, which are being implemented under the Affordable Care Act (PL 111-148), require health plans issued or renewed after Aug. 1 to cover contraceptive services without copayments or deductibles. HHS has given religiously affiliated entities, such as colleges and hospitals, a one-year delay period to come into compliance, and religious institutions, such as churches and synagogues, are exempt altogether (Women's Health Policy Report, 1/10).

If a Texas business with religious objections to contraceptive coverage is penalized for not complying with the rules, the bill would allow that business to claim a state tax break up to the total amount of its state tax bill.

One business that would be covered under the bill is Hobby Lobby, whose Christian owners have unsuccessfully challenged the rules in court. The business faces a $1.3 million per day penalty if it does not comply with the contraceptive coverage requirement.

State Rep. Jonathan Stickland (R), the bill's sponsor, introduced another measure (HCR 32) that calls on the federal government to offer an exemption to businesses with religious objections to the rules (Texas Tribune, 1/24).