Sponsors (12)
The bill reduces the tax burden for relocating intelligence-community and federal employees—raising their take-home pay and easing recruitment—at the cost of lower federal revenues and added administrative burden for employers and payroll systems.
Relocating intelligence-community and other federal employees will pay less tax on employer reimbursements for qualifying moves, increasing their take-home pay and lowering net relocation costs.
Taxpayers and payroll administrators have a clear effective date because the change applies prospectively to taxable years after enactment, reducing uncertainty about implementation timing.
All taxpayers may face indirect impacts because excluding moving reimbursements and restoring the deduction reduces federal tax receipts and narrows the tax base, potentially increasing the deficit or shifting tax burdens onto others.
Employers, federal agencies, and payroll departments will incur administrative and compliance burdens to implement the new exclusion and deduction rules.
Based on analysis of 2 sections of legislative text.
Reinstates a moving-expense deduction and adds an exclusion for qualified moving expense reimbursements for intelligence community personnel.
Introduced June 23, 2025 by Thomas Bryant Cotton · Last progress June 23, 2025
Expands tax treatment of moving expenses for intelligence community personnel by reinstating a moving-expense deduction and creating an exclusion for qualified moving expense reimbursements, reducing taxable income for affected moves. The changes apply to taxable years beginning after enactment and are intended to make relocation for intelligence community positions less costly and more administratively straightforward for employees and employers.