Workers get tax break for tools and safety gear—finally.
H.R. 2173 — Tools Tax Deduction Act · Filed by Nicole (Nikki) Budzinski (D-IL) · 6 cosponsors · Introduced Mar 18, 2025 · Referred to committee
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What it does
This bill allows employees to deduct work-related expenses—such as tools, safety gear, and other job-site necessities—directly from their taxable income without the usual limitations that apply to most employee business expenses. Currently, these deductions are either unavailable or heavily restricted; this bill removes those restrictions for employees whose jobs require them to supply their own equipment and protective gear.
Why we flagged it
The bill's operative mechanism is a direct tax deduction for employee work expenses. It is a targeted tax relief measure for workers who must supply their own tools and safety equipment.
What the text implies
- The bill does not define 'construction tools,' 'personal protective clothing and gear,' or 'other expenses in connection with such place of employment'—these terms will require IRS guidance or litigation to clarify scope, creating uncertainty about which workers and which expenses qualify.
- By exempting employee work expenses from the 2-percent-of-AGI floor (§67(a)), the bill may create a tax-planning opportunity for high-income employees in certain professions to shift deductible expenses into this category, potentially reducing revenue.
The full analysis lists 3 implications of this text.
Who stands to gain
employees in trades and construction; manufacturing and industrial workers; any employee required to supply personal protective equipment or tools