Title 5 — Government Organization and EmployeesRelease 119-73
§5724b Taxes on reimbursements for travel, transportation, and relocation expenses
Title 5 › Part PART III— - EMPLOYEES › Subpart Subpart D— - Pay and Allowances › Chapter CHAPTER 57— - TRAVEL, TRANSPORTATION, AND SUBSISTENCE › Subchapter SUBCHAPTER II— - TRAVEL AND TRANSPORTATION EXPENSES; NEW APPOINTEES, STUDENT TRAINEES, AND TRANSFERRED EMPLOYEES › § 5724b
Summary
Under rules made under section 5738, an agency can use its administrative funds to pay most federal, state, and local income taxes that an employee (or an employee and spouse filing jointly) owes because the agency paid or reimbursed travel, transportation, or moving costs. The agency can only pay taxes up to the amount of those expenses, and it must also pay any extra tax that comes from paying the tax reimbursement itself. Travel, transportation, or relocation expenses means the travel, transport, and moving costs paid or reimbursed under the travel rules in this subchapter or chapter 41.
Full Legal Text
Title 5, §5724b
Government Organization and Employees — Source: USLM XML via OLRC
(a)Under regulations prescribed under section 5738 of this title and to the extent considered necessary and appropriate, as provided therein, appropriations or other funds available to an agency for administrative expenses are available for the reimbursement of substantially all of the Federal, State, and local income taxes incurred by an individual, or by an individual and such individual’s spouse (if filing jointly), for any travel, transportation, or relocation expenses furnished in kind, or for which reimbursement or an allowance is provided (but only to the extent of the expenses paid or incurred). Reimbursements under this subsection shall also include an amount equal to all income taxes for which the individual, or the individual and spouse, as the case may be, would be liable due to the reimbursement for the taxes referred to in the first sentence of this subsection.
(b)For purposes of this section, the term “travel, transportation, or relocation expenses” means all travel, transportation, and relocation expenses reimbursed or furnished in kind pursuant to this subchapter or chapter 41.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2021—Subsec. (b). Pub. L. 116–283 substituted “and relocation expenses reimbursed” for “or relocation expenses reimbursed” and “or chapter 41” for “of chapter 41”. 2019—Pub. L. 116–92, § 1114(a)(1), struck out “of employees transferred” after “relocation expenses” in section catchline. Subsec. (a). Pub. L. 116–92, § 1114(a)(2), substituted “individual, or by an individual and such individual’s spouse (if filing jointly), for any travel, transportation, or relocation” for “employee, or by an employee and such employee’s spouse (if filing jointly), for any moving or storage” and “individual, or the individual” for “employee”. Subsec. (b). Pub. L. 116–92, § 1114(a)(3), added subsec. (b) and struck out former subsec. (b) which read as follows: “For the purposes of this section, ‘moving or storage expenses’ means travel and transportation expenses (including storage of household goods and personal effects under section 5724 of this title) and other relocation expenses under section 5724a and 5724c of this title.” 1996—Subsec. (a). Pub. L. 104–201 substituted “Under
Regulations
prescribed under section 5738 of this title” for “Under such
Regulations
as the President may prescribe”. 1984—Pub. L. 98–473 amended section generally, substituting “reimbursement of substantially all of the Federal, State, and local income taxes” for “reimbursement of all or part of the Federal, State, and city income taxes” and “for which the employee and spouse, as the case may be” for “for which the employee, or the employee and spouse, as the case may be” in subsec. (a) and “5724c” for “5726(c)” in subsec. (b).
Statutory Notes and Related Subsidiaries
Retroactive
Effective Date
of 2021 Amendment Pub. L. 116–283, div. A, title XI, § 1121(b), Jan. 1, 2021, 134 Stat. 3900, provided that: “The
Amendments
made by subsection (a) [amending this section] shall take effect as if included in the enactment of section 1114 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92).”
Effective Date
of 2019 Amendment Pub. L. 116–92, div. A, title XI, § 1114(c), Dec. 20, 2019, 133 Stat. 1604, provided that: “The
Amendments
made by this section [amending this section] shall take effect on January 1, 2018.”
Effective Date
of 1996 AmendmentAmendment by Pub. L. 104–201 effective 180 days after Sept. 23, 1996, see section 1725(a) of Pub. L. 104–201, set out as a note under section 5722 of this title.
Effective Date
Promulgation of
Regulations
Enactment by Pub. L. 98–151 and promulgation of
Regulations
for
Amendments
by Pub. L. 98–151 effective Nov. 14, 1983, see section 118(c) of Pub. L. 98–151, set out as an
Effective Date
of 1983 Amendment; Promulgation of
Regulations
note under section 5724 of this title. Funding of
Amendments
by Pub. L. 98–151
Amendments
by Pub. L. 98–151 to be carried out by agencies by use of funds appropriated or otherwise available for administrative expenses of such agencies, and do not authorize appropriation of funds in amounts exceeding sums already authorized to be appropriated for such agencies, see section 118(b) of Pub. L. 98–151, set out as a note under section 5724 of this title.
Reference
Citations & Metadata
Citation
5 U.S.C. § 5724b
Title 5 — Government Organization and Employees
Last Updated
Apr 6, 2026
Release point: 119-73