Moving Industry Supports Bill to Protect Federal Employees from Unfair Taxes on Relocation Expenses

Congress Also Urged to Restore Moving-Related Tax Provisions for All Americans

December 14, 2018

ALEXANDRIA, VA — The American Moving & Storage Association applauds Rep. Denny Heck of the Washington 10th Congressional District for introducing legislation that would exclude the moving expenses of federal employees who work overseas as taxable income. The Keeping the Promise to American Public Servants Act (H.R. 7254) would create a tax exclusion for those costs for federal workers, similar to the one currently in place for military servicemembers. If the bill becomes law, federal workers would not be taxed on overseas moving expenses that they incurred after Dec. 31, 2017.

In addition, the American Moving & Storage Association strongly urges Congress to restore the Moving Expense Deduction and Income Exclusion for every taxpayer without delay. The moving-related tax provisions had allowed Americans moving more than 50 miles to relocate for a new job opportunity to deduct the moving expenses from their federal tax forms while preventing employer-provided relocation assistance from being considered a taxable benefit. Restoring these employment-stimulating tax provisions to the tax code would support economic growth and home ownership.

“Federal workers who relocate overseas should not be financially penalized for moving when their job requires it. This legislation is needed so that the federal government can recruit and retain skilled employees who our nation needs to serve in vital international roles. We also believe all Americans should be able to deduct their moving expenses from their tax forms to support workforce mobility across the United States,” said President and CEO Scott Michael.

“What’s good for federal workers should also be good for the American people. Everyone who relocates for a new job should be incentivized, not penalized, for seeking new employment. It makes good economic sense and it’s just good policy,” said Vice President of Government Affairs Paul Milotte.

For a copy of the Keeping the Promise to American Public Servants Act (H.R. 7254), click here.

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The American Moving & Storage Association, home of the ProMover certification program, is the national trade association representing the nation’s moving and storage companies, which provide household goods moving services, specialized transportation for sensitive freight such as computers and trade show exhibits, and warehouse storage services. The association has approximately 3,500 members, including domestic and international companies and industry suppliers, and supports programs and activities that promote consumer protection, professional development, safety, and operational efficiency. Find out more at ProMover.org and Moving.org.