Summary

Expands federal tax treatment for relocation costs for members of the intelligence community by adding a new moving-expense deduction and a tax-free employer reimbursement rule to the Internal Revenue Code. The change is designed to reduce tax burdens when intelligence personnel relocate for mission needs and applies to taxable years beginning after enactment. The bill affects how eligible intelligence community employees report moving costs and how employers treat reimbursements, likely reducing taxable income for covered moves and shifting reporting and administrative responsibilities to employers and the IRS.

Key Points

• Creates a new federal tax deduction for qualified moving expenses for certain intelligence community personnel.
• Allows qualified moving expense reimbursements from employers to be excluded from the employee's taxable income.
• Amendments are made to the Internal Revenue Code sections governing moving expense deductions and employer-provided fringe benefits.
• Takes effect for taxable years beginning after the date of enactment.
• Aims to lower tax-related barriers to relocating intelligence personnel for mission-critical assignments.
• Imposes new administrative tasks on employers and the IRS for documenting and excluding reimbursements.
• Likely reduces federal tax receipts, though no revenue estimate or offset is included in the text.
• Targets a narrow group (intelligence community members) rather than the general workforce.

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