Under the Tax Cuts and Jobs Act of 2017, Congress eliminated the moving expense tax deduction, and the exclusion from income of moving expense payments by employers to move their employees, through December 31, 2025. The tax deduction and reduction had enjoyed bipartisan support for over 50 years but were suspended in 2017 to help offset the cost of lowering the corporate tax rate. The deduction and exclusion together make up a vital tax relief tool that makes relocation for work more affordable and supports worker mobility.
Congress will be under pressure to again suspend the deduction to help offset the cost of the expiring individual tax cuts from the Tax Cuts and Jobs Act. To maximize our influence with policymakers, WERC has established the Relocation Mobility Coalition with the American Trucking Associations' Moving and Storage Conference and International Association of Movers to advocate for Congress to reinstate the moving expense deduction and exclusion on January 1, 2026, when the suspension expires. Our Tax Forum Work Group is leading the charge for WERC in the pushing for tax relief for talent mobility.