H. R. 2173

1. Short title
2. Allowance of deduction for certain expenses of being an employee

1. Short title

This Act may be cited as the "Tools Tax Deduction Act".

2. Allowance of deduction for certain expenses of being an employee

(a) Above-the-Line deduction for certain expenses - Section 62(a)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: "The limitation under the preceding sentence shall not apply to deductions which are attributable to a trade or business consisting of the performance of services by the taxpayer as an employee if such deductions are for construction tools, personal protective clothing and gear, and other expenses in connection with such place of employment which are necessary for such individual to be able to work.".

(b) Allowance of miscellaneous itemized deduction for other expenses of the trade or business of being an employee - Section 67(g) of the Internal Revenue Code of 1986 is amended—

(1) In general - by striking "2025.—Notwithstanding subsection (a)," and inserting

(1) In general - Notwithstanding subsection (a), except as provided in paragraph (2),

(2) Exceptions for expenses of the trade or business of being an employee - by adding at the end the following:

(2) Exceptions for expenses of the trade or business of being an employee -

(A) In general - Paragraph (1) shall not apply to miscellaneous itemized deductions for any taxable year which are itemized deductions attributable to a trade or business carried on by the taxpayer which consists of the performance of services by the taxpayer as an employee.

(B) Application of 2-percent test - In applying subsection (a) for any taxable year to which this paragraph applies, only the itemized deductions described in subparagraph (A) shall be taken into account as miscellaneous itemized deductions.

119-HR2173

Tools Tax Deduction Act

119th CONGRESS

1st Session

H. R. 2173

1. Short title

2. Allowance of deduction for certain expenses of being an employee