Washington – In advance of tomorrow's Committee Markup, the ATA Moving & Storage Conference (ATA-MSC), International Association of Movers (IAM), and WERC (formerly the Worldwide Employee Relocation Council) sent a letter urging the House Ways and Means Committee to reinstate the bipartisan moving expense tax deduction and exclusion. This critical deduction, taken in earlier years largely by middle-income Americans relocating for work, was scheduled to come back into effect January 1st, 2026. In an effort to fund additional elements of the new administration's priorities, it now finds itself slated for termination in outlying years. The deduction and exclusion together make up a vital tax relief tool that makes relocation for work affordable and supports talent mobility - the lynchpin of a strong economy.
May 13, 2025
The Honorable Jason Smith The Honorable Richard Neal
Chairman Ranking Member
U.S. House Ways & Means Committee U.S. House Ways & Means Committee
1139 Longworth House Office Building 1139 Longworth House Office Building
Washington, DC 20515 Washington, DC 20515
Dear Chairman Smith and Ranking Member Neal:
The American Trucking Associations Moving and Storage Conference (ATA-MSC), International Association of Movers (IAM) and WERC (formerly the Worldwide Employee Relocation Council) respectfully urge you to reinstate the bipartisan moving expense tax deduction and exclusion.
We commend the committee’s goal to streamline the tax code and make permanent the personal income tax rate without increasing the federal debt. However, at a time when both Congress and the Trump Administration are working to increase America’s manufacturing and industrial capacity, continuing the open-ended suspension of the moving expense deduction and exclusion would be counterproductive by penalizing the 350,000-plus Americans being moved by their company for work-related purposes annually and the companies that employ them.
The Americans being adversely impacted are primarily middle-class workers pursuing their American dream and moving where their employers can most efficiently utilize their skill. Prior to its suspension, 72% of U.S. taxpayers who claimed the moving deduction earned $100,000 or less. The moving costs incurred, either by an employee or by their employer, to relocate that individual and their family is not income received by the taxpayer. The payments are reimbursement for work-related expenses to relocate not income. Eliminating the tax deductibility of these payments causes them to be treated as taxable income, thereby penalizing the employee by imposing a personal cost and discouraging them from moving. This unexpected negative impact on employee motivations is directly detrimental to the competitiveness of American corporations trying to 'make in America' and thereby to American competitiveness.
Reinstating this well-defined tax expense deduction and exclusion, which has been part of the tax code since 1964, will restore this critical tax relief for middle-class workers affected most by the current suspension and enable their employers to compete more effectively. It would enable employers to significantly lower the cost of relocating talent and more generally leverage the movement of talent to address critical skills gaps impacting their operations. It would also advance the U.S. economy by expanding operations, fostering innovation, promoting economic competitiveness, and preventing labor imbalances across our nation.
The deduction and exclusion together make up a vital tax relief tool that makes relocation for work affordable and supports talent mobility - the lynchpin of a strong economy. We urge you to end the suspension of the moving expense deduction and exclusion in order to build strong and efficient businesses throughout the country.
Sincerely,
Dan Hilton
Executive Director
American Trucking Associations Moving & Storage Conference
Brian Limperopulos
President
International Association of Movers
Anupam Singhal
President & CEO
WERC (formerly Worldwide ERC)