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Worldwide ERC®, AMSA and IAM Ask Congress to Reinstate Moving Tax Expense Deduction & Exclusion

Eric House - Jul 21 2020
Published in: Public Policy
Worldwide ERC®, American Moving & Storage Association (AMSA) and International Association of Movers (IAM) sent a letter to Congress on behalf of the household goods moving industry and the workforce mobility industry requesting reinstatement of the moving tax expense deduction and exclusion.

Earlier this month, Worldwide ERC® sent a letter with AMSA and IAM on behalf of the household goods moving industry and the workforce mobility industry to Congressional leaders including Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy. The letter urges Congress to restore a tax relief tool that is vital to making work relocation affordable while supporting workforce mobility.

AMSA and IAM represent the household good moving industry which employs over half a million individuals, and contributes almost $100 billion to the U.S. economy. This industry, which is very seasonal, is facing business downturn with residential and commercial bookings falling.

At the same time, changes in the way businesses conduct work and the shift to employees working from home is causing many companies to put moves on hold. The expenses that come with relocation are often not feasible for companies struggling to stay in business in this trying economic time. Therefore, the letter asks for Congress to reinstate the moving tax expense deduction and exclusion.

The recent Tax Cut and Jobs Act eliminated the moving expense deduction and exclusion from income of moving expense payments by employers who move their employees through 31 December, 2025. This removal negatively impacts individuals and companies who pay relocation expenses and provides no tax relief for when moving for a job. Additionally, the recent NDAA bill only reinstated the moving tax expense deduction for Federal employees. Extending that relief to all employees and employers would greatly help corporations and their employees.

The letter specifically asks that Congress reinstate the moving tax expense deduction retroactively to the beginning of 2019 to provide approximately $1 billion in immediate relief to employees and the companies moving them.

How This Impacts Mobility

By making the reinstatement retroactive to 1 January, 2019, it allows many thousands of employees who moved in 2019, and their employers, to obtain immediate financial relief when filing their 2019 tax returns. The companies involved in relocation, including the household goods moving industry, relocation management companies and destination service providers are crucial to the American economy. This deduction and exclusion will help companies offset the expenses associated with changing operations due to the pandemic, stimulate the economy, and allow Worldwide ERC®’s members to continue safely moving individuals. Should any member have questions regarding this letter, please reach out to Vice President, Member Engagement and Public Policy Rebecca Peters, rpeters@worldwideerc.org.