Unreimbursed employee expenses taken into account as miscellaneous itemized deduction

(a) In general Section 67(g) of the Internal Revenue Code of 1986 is amended— (1) by striking through 2025.— Notwithstanding subsection (a) and inserting the following; through 2027.— (1) In general Notwithstanding subsection (a), and except to the extent provided in paragraph (2), and (2) by adding at the end the following new paragraph: (2) Exception for unreimbursed food, lodging, travel, or transportation expenses of employees For such taxable years— (A) In general An individual may take into account under subsection (a) 85 percent of any miscellaneous itemized deductions for the taxable year which are unreimbursed food, lodging, travel, or transportation expenses paid or incurred by the individual in connection with the performance of services as an employee. (B) Modified floor Subsection (a) shall be applied by substituting 1 percent for 2 percent.. (b) Effective date The amendment made by this section shall take effect as if included in section 11045 of Public Law 115–97 (commonly known as the Tax Cuts and Jobs Act). (c) Extension of statute of limitation on credit or refund If the period of limitation on a credit or refund resulting from the amendments made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period.