MODIFICATIONS TO DEDUCTION FOR MOVING EXPENSES.

SEC. 13213. MODIFICATIONS TO DEDUCTION FOR MOVING EXPENSES. (a) Definition of Deductible Expenses.— (1) In general.— Subsection (b) of section 217 (defining moving expenses) is amended to read as follows: “(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 lodging) from the former residence to the new place of residence. Such term shall not include any expenses for meals. “(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.” (2) Conforming amendments.— (A) Section 217 is amended by striking subsection (e). (B) Subsection (f) of section 217 is amended to read as follows: “(f) Self-Employed Individual.— For purposes of this section, the term ‘self-employed individual’ means an individual who performs personal services— “(1) as the owner of the entire interest in an unincorporated trade or business, or “(2) as a partner in a partnership carrying on a trade or business.” (C) Paragraph (3) of section 217(g) is amended by inserting “and” at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B). 107 STAT. 474 (D) Subsection (h) of section 217 is amended by striking paragraph (1) and redesignating the following paragraphs accordingly. (E) Section 1001 is amended by striking subsection (f). (F) Subsection (e) of section 1016 is amended to read as follows: “(e) Cross Reference.— “For treatment of separate mineral interests as one property, see section 614.” (b) Increase in Mileage Requirement.— Paragraph (1) of section 217(c) is amended by striking “35 miles” each place it appears and inserting “50 miles”. (c) Deduction Allowed in Computing Adjusted Gross Income.— (1) In general.— Subsection (a) of section 62 (defining adjusted gross income) is amended by inserting after paragraph (14) the following new paragraph: “(15) Moving expenses.— The deduction allowed by section 217.” (2) Conforming amendment.— Subsection (b) of section 67 is amended by striking paragraph (6) and redesignating the following paragraphs accordingly. (d) Exclusion of Employer Reimbursement for Deductible Expenses.— (1) In general.— Subsection (a) of section 132 (relating to certain fringe benefits) is amended by striking “or” at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting “, or”, and by adding at the end thereof the following new paragraph: “(6) qualified moving expense reimbursement.” (2) Qualified moving expense reimbursement defined.— Section 132 is amended by redesignating subsections (g), (h), (i), (j), (k), and (1), as subsections (h), (i), (j), (k), (1), and (m), respectively, and by inserting after subsection (f) the following new subsection: “(g) Qualified Moving Expense Reimbursement.— For purposes of this section, the term ‘qualified moving expense reimbursement’ means any amount received (directly or indirectly) by an individual from an employer as a payment for (or a reimbursement of) expenses which would be deductible as moving expenses under section 217 if directly paid or incurred by the individual. Such term shall not include any payment for (or reimbursement of) an expense actually deducted by the individual in a prior taxable year.” (3) Conforming amendments.— (A) Section 82 is amended by striking “There shall” and inserting “Except as provided in section 132(a)(6), there shall”. (B) Subsection (j) of section 132 (as redesignated by paragraph (2)) is amended by striking “subsection (f)” in paragraph (4)(B)(iii) thereof and inserting “subsection (h)”. (C) Subsection (1) of section 132 (as redesignated by paragraph (2)) is amended by striking “subsection (e)” and inserting “subsections (e) and (g)”. (D) Section 4977(c) is amended by striking “section 132(g)(2)” and inserting “section 132(i)(2)”. 107 STAT. 475 (e) Effective Date.— The amendments made by this section shall apply to expenses incurred after December 31, 1993; except that the amendments made by subsection (d) shall apply to reimbursements or other payments in respect of expenses incurred after such date.