[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 434 Introduced in Senate (IS)]

  1st Session
                                 S. 434

      To amend the Internal Revenue Code of 1986 to increase the 
deductibility of business meal expenses for individuals who are subject 
              to Federal limitations on hours of service.


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                   IN THE SENATE OF THE UNITED STATES

            February 16 (legislative day, January 30), 1995

   Mr. Kohl introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
      To amend the Internal Revenue Code of 1986 to increase the 
deductibility of business meal expenses for individuals who are subject 
              to Federal limitations on hours of service.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCREASED DEDUCTIBILITY OF BUSINESS MEAL EXPENSES FOR 
              INDIVIDUALS SUBJECT TO FEDERAL LIMITATIONS ON HOURS OF 
              SERVICE.

    (a) In General.--Section 274(n) of the Internal Revenue Code of 
1986 (relating to only 50 percent of meal and entertainment expenses 
allowed as deduction) is amended by adding at the end the following new 
paragraph:
            ``(3) Special rule for individuals subject to federal 
        limitations on hours of service.--In the case of any expenses 
        for food or beverages consumed by an individual during, or 
        incident to, any period of duty which is subject to the hours 
        of service limitations of the Department of Transportation, 
        paragraph (1) shall be applied by substituting `80 percent' for 
        `50 percent'.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1994.
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