Mobile Workforce State Income Tax Simplification Act of 2025
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill creates federal preemption establishing a 30-day threshold before non-resident states can impose income tax on mobile workers, provides safe harbor for employers relying on employee certifications, and limits state and establishes that the Act takes effect January 1 of the second calendar year after enactment and does not apply to tax obligations that accrued before the effective date. It relies on exemptions and liability protections. The main policy areas are Taxation, Technology, Labor, and Finance.
Who Benefits and How
Multi-state employers with traveling employees could face lower compliance burdens, Employees who work across state lines (mobile workers) could see lower costs, and Sports teams and entertainment companies could see lower costs.
Who Bears the Burden and How
State tax authorities could lose revenue opportunities.
Key Provisions
- Creates federal preemption establishing a 30-day threshold before non-resident states can impose income tax on mobile workers, provides safe harbor for employers relying on employee certifications, and limits state...
- Establishes that the Act takes effect January 1 of the second calendar year after enactment and does not apply to tax obligations that accrued before the effective date.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates federal preemption establishing a 30-day threshold before non-resident states can impose income tax on mobile workers, provides safe harbor for employers relying on employee certifications, and limits state and establishes that the Act takes effect January 1 of the second calendar year after enactment and does not apply to tax obligations that accrued before the effective date.
Key Policy Areas
Taxation, Technology, Labor, Finance
Primary Purpose
The bill creates federal preemption establishing a 30-day threshold before non-resident states can impose income tax on mobile workers, provides safe harbor for employers relying on employee certifications, and limits state and establishes that the Act takes effect January 1 of the second calendar year after enactment and does not apply to tax obligations that accrued before the effective date.
Policy Domains
Mobile Workforce Tax Rules
Identified Gains
- Multi-state employers with traveling employees
- Employees who work across state lines (mobile workers)
- Sports teams and entertainment companies
- Professional services firms with consultants
- Technology companies with remote workers
Identified Costs
- State tax authorities
Sponsors
Legislative Progress
In CommitteeMr. Thune (for himself and Ms. Cortez Masto) introduced the …
Read twice and referred to the Committee on Finance. (text: …
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Professional services firms with consultants
Sports teams and entertainment companies
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "employee"
- → Any worker who performs employment duties in more than one state
- "employer"
- → Any entity that employs workers who perform duties in multiple states
Key Definitions
Terms defined in this bill
Physical presence in a state while performing work duties; presence for personal reasons while not performing duties does not count
Includes the District of Columbia but not US territories or possessions
An employer system that tracks where employees perform duties on a daily basis
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology