MOVING EXPENSES.

SEC. 506. MOVING EXPENSES. (a) Decrease in Mileage Test From 50 Miles to 35 Miles.— Paragraph (1) of section 217(c) (relating to conditions for allowance of deduction for moving expenses) is amended by striking out “50 miles” each place it appears and inserting in lieu thereof “35 miles”. (b) Increase in Dollar Amounts.— (1) Certain expenses of traveling, meals, and lodging after obtaining employment.— The first sentence of subparagraph (A) of section 217(b)(3) (relating to dollar limits) is amended by Striking out “$1,000” and inserting in lieu thereof “$1,500”. (2) Aggregate dollar limit.— The second sentence of subparagraph (A) of section 217(b)(3) is amended by striking out “$2,500” and inserting in lieu thereof “$3,000”. (3) Separate returns.— The second sentence of subparagraph (B) of section 217(b)(3) (relating to dollar limits in the case of husband and wife) is amended to read as follows: “In the case of a husband and wife filing separate returns, subparagraph (A) shall be applied by substituting ‘$750’ for ‘$1,500’, and by substituting ‘$1,500’ for ‘$3,000’.” (c) Rules for Members of the Armed Forces of the United States.— Section 217 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection: “(g) Rules for Members of the Armed Forces of the United States.— In the case of a member of the Armed Forces of the United 90 STAT. 1569States on active duty who moves pursuant to a military order and incident to a permanent change of station— “(1) the limitations under subsection (c) shall not apply; “(2) any moving and storage expenses which are furnished in kind (or for which reimbursement or an allowance is provided, but only to the extent of the expenses paid or incurred) to such member, his spouse, or his dependents, shall not be includible in gross income, and no reporting with respect to such expenses shall be required by the Secretary of Defense or the Secretary of Transportation, as the care may be; and “(3) if moving and storage expenses are furnished in kind (or if reimbursement, or an allowance for such expenses is provided) to such member’s spouse and his dependents with regard to moving to a location other than the one to which such member moves (or from a location other than the one from which such member moves), this section shall apply with respect to the moving expenses of his spouse and dependents— “(A) as if his spouse commenced work as an employee at a new principal place of work at such location; “(B) for purposes of subsection (b)(3), as if such place of work was within the same general location as the member’s new principal place, of work, and “(C) without regard to the limitations under subsection (c)” (d) Effective Date.— The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 1976.