Details of Public Law 119-21, section 70113 , One Big Beautiful Bill Act

This provision permanently disallows the deduction for moving expenses as previously suspended under Tax Cuts and Jobs Act (Public Law 115-97, section 11049), except for a member of the Armed Forces on active duty who moves pursuant to a military order and incident to a permanent change of station. This provision adds an exception to the permanent disallowance of the deduction for an employee or new appointee of the intelligence community who moves pursuant to a change in assignment which requires relocation.

This provision also permanently removes the exclusion from gross income reimbursements of qualified moving expenses, except in the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station. This provision adds an exception to the permanent removal of the exclusion for an employee or new appointee of the intelligence community who moves pursuant to a change in assignment that requires relocation (IRC section 132(g)).

Under PITL, California generally conforms to IRC section 217 as of the specified date of January 1, 2025 but does not conform to the federal temporary suspension of the qualified moving expense deduction for taxable years 2018 through 2025 prescribed under the Tax Cuts and Jobs Act (Public Law 115-97) nor the permanent suspension of the deduction established under this federal provision.

Under the PITL, California conforms to the federal rules relating to the gross income exclusion for qualified moving expense reimbursement under IRC section 132(g), as of the specified date of January 1, 2025, but does not conform to the federal temporary suspension enacted under the Tax Cuts and Jobs Act or the permanent suspension of this exclusion.

As a result, California does not conform to the changes made by this provision.

The estimated revenue impact to conform to the above provisions would result in the following gain:

26/27 27/28 28/29 29/30 $55,000,000 $39,000,000 $40,000,000 $41,000,000