H.R. 1691

119 HR 1691 IH: Employee Business Expense Deduction Reinstatement Act of 2025
 U.S. House of Representatives
 2025-02-27
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 I  119th CONGRESS  1st Session  H. R. 1691  IN THE HOUSE OF REPRESENTATIVES   February 27, 2025   Mr. Grothman  (for himself and  Mr. Harris of Maryland ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to allow unreimbursed employee expenses to be taken into account as miscellaneous itemized deductions.
1.
Short title
This Act may be cited as the   Employee Business Expense Deduction Reinstatement Act of 2025  .
2.
Unreimbursed employee expenses taken into account as miscellaneous itemized deduction
(a)
In general
 Section 67(g)  of the Internal Revenue Code of 1986 is amended—
(1)
by striking
through
2025 .— Notwithstanding subsection (a)  and inserting the following;
through
2027  .—
(1)
In general
Notwithstanding subsection (a), and except to the extent provided in paragraph (2)
 , and
(2)
by adding at the end the following new paragraph:
(2)
Exception for unreimbursed food, lodging, travel, or transportation expenses of employees
For such taxable years—
(A)
In general
An individual may take into account under subsection (a) 85 percent of any miscellaneous itemized deductions for the taxable year which are unreimbursed food, lodging, travel, or transportation expenses paid or incurred by the individual in connection with the performance of services as an employee.
(B)
Modified floor
Subsection (a) shall be applied by substituting  1 percent  for  2 percent .
 .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 11045 of  Public Law 115–97  (commonly known as the Tax Cuts and Jobs Act).
(c)
Extension of statute of limitation on credit or refund
If the period of limitation on a credit or refund resulting from the amendments made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period.