Adds a sentence to 62(a)(1) creating an exception to the existing limitation that disallows trade-or-business deductions for trades consisting of the performance of services as an employee; the new sentence allows deductions for construction tools, personal protective clothing and gear, and other necessary expenses in connection with the place of employment for such employees.

Amends subsection (g) to (1) revise the general text and (2) add an explicit exception stating that the 2-percent floor of subsection (a) shall not apply to miscellaneous itemized deductions attributable to a trade or business consisting of performing services as an employee, and to limit which deductions are treated as miscellaneous itemized deductions when applying the 2-percent test.