MOVING EXPENSES.

SEC. 213. MOVING EXPENSES. (a) Deduction Allowed for Moving Expenses.— (1) Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 217 as section 218 and by inserting after section 216 the following new section: 78 Stat. 51 “SEC. 217. MOVING EXPENSES. “(a) Deduction Allowed.—There shall be allowed as a deduction moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee at a new principal place of work. “(b) Definition of Moving Expenses.— “(1) In general.—For purposes of this section, the term ‘moving expenses’ means only the reasonable expenses— “(A) of moving household goods and personal effects from the former residence to the new residence, and “(B) of traveling (including meals and lodging) from the former residence to the new place of residence. “(2) Individuals other than taxpayer.—In the case of any individual other than the taxpayer, expenses referred to in paragraph (1) shall be taken into account only if such individual has both the former residence and the new residence as his principal place of abode and is a member of the taxpayer’s household. “(c) Conditions for Allowance.—No deduction shall be allowed under this section unless— “(1) the taxpayer’s new principal place of work— “(A) is at least 20 miles farther from his former residence than was his former principal place of work, or “(B) if he had no former principal place of work, is at least 20 miles from his former residence, and “(2) during the 12-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee, in such general location, during at least 39 weeks. “(d) Rules for Application of Subsection (c)(2).— “(1) Subsection (c) (2) shall not apply to any item to the extent that the taxpayer receives reimbursement or other expense allowance from his employer for such item. “(2) If a taxpayer has not satisfied the condition of subsection (c)(2) before the time prescribed by law (including extensions thereof) for filing the return for the taxable year during which he paid or incurred moving expenses which would otherwise be deductible under this section, but may still satisfy such condition, then such expenses may (at the election of the taxpayer) be deducted for such taxable year notwithstanding subsection (c) (2). “(3) If— “(A) for any taxable year moving expenses have been deducted in accordance with the rule provided in paragraph (2), and “(B) the condition of subsection (c) (2) is not satisfied by the close of the subsequent taxable year, then an amount equal to the expenses which were so deducted shall be included in gross income for such subsequent taxable year. “(e) Disallowance of Deduction With Respect to Reimbursements Not Included in Gross Income.—No deduction shall be allowed under this section for any item to the extent that the taxpayer receives reimbursement or other expense allowance for such item which is not included in his gross income. “(f) Regulations.—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section.” 78 Stat. 52 (2) The table of sections for part VII of subchapter B of chapter 1 is amended by striking out— “Sec. 217. Cross references.” and inserting in lieu thereof the following: “Sec. 217. Moving expenses. “Sec. 218. Cross references.” (b) Adjusted Gross Income.—Section 62 (defining adjusted gross income) is amended by inserting after paragraph (7) the following new paragraph: “(8) Moving expense deduction.—The deduction allowed by section 217.” (c) Withholding.—Section 3401(a) (relating to definition of “wages”) is amended by adding after paragraph (14) (added by section ‘204(b) of this Act) the following new paragraph: “(15) to or on behalf of an employee if (and to the extent that) at the time of the payment of such remuneration it is reasonable to believe that a corresponding deduction is allowable under section 217.” (d) Effective Dates.—The amendments made by subsections (a) and (b) shall apply to expenses incurred after December 31, 1963, in taxable years ending after such date. The amendment made by subsection (c) shall apply with respect to remuneration paid after the seventh day following the date of the enactment of this Act.