Tools Tax Deduction Act
Sponsored By: Representative Budzinski
Introduced
Summary
Creates an above-the-line deduction for employee work expenses such as construction tools, personal protective clothing, and other necessary on-the-job items. The bill would also change how those same expenses are treated as miscellaneous itemized deductions for tax years after 2025.
Show full summary
- Workers: Employees who buy required tools or PPE could deduct those costs above the line, which reduces adjusted gross income instead of only being claimed as an itemized deduction.
- Itemizers and tax filers: The bill revises section 67(g) to set a two-part framework for treating these employee expenses and specifies how the 2 percent test applies for taxable years after 2025.
- Timing: The change applies to taxable years beginning after December 31, 2025.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Tax break for workers' tools and gear
If enacted, W-2 workers could deduct what they spend on required tools, safety clothing, and gear for their jobs. These costs would be an above-the-line deduction, so you could claim them even if you do not itemize. The bill would also update itemized deduction rules for other employee work expenses, using a special 2% test just for those costs. Changes would start for tax years beginning after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Budzinski
IL • D
Cosponsors
Rep. Garbarino, Andrew R. [R-NY-2]
NY • R
Sponsored 3/18/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 4/10/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 9/26/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 9/30/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov