[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3143 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3143

 To amend the Internal Revenue Code of 1986 to encourage the patronage 
 of the travel, hospitality, restaurant, and entertainment industries.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 16, 2001

Mr. Reynolds (for himself and Mrs. Maloney of New York) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to encourage the patronage 
 of the travel, hospitality, restaurant, and entertainment industries.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Freedom to Travel Act of 2001''.

SEC. 2. TRAVEL, MEALS, ENTERTAINMENT, AND LODGING EXPENSES.

    (a) Business Deduction.--Paragraph (1) of 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: ``In the case of expenses paid or incurred 
during the period beginning on the date of the enactment of this 
sentence and ending on December 31, 2002, the preceding sentence shall 
be applied by substituting `80 percent' for `50 percent'.''.
    (b) Personal Deduction.--
            (1) In general.--Section 262 of such Code (relating to 
        personal, living, and family expenses) is amended by adding at 
        the end the following new subsection:
    ``(c) Domestic Travel Expenses.--
            ``(1) In general.--Subsection (a) shall not apply for the 
        first taxable year beginning after December 31, 2001, to an 
        amount equal to 50 percent of domestic travel expenses.
            ``(2) Limitation.--The deduction allowed by paragraph (1) 
        for such taxable year shall not exceed the sum of--
                    ``(A) $1,000 ($2,000 in the case of a joint return) 
                in the case of qualified personal travel expenses, plus
                    ``(B) $500 ($1,000 in the case of a joint return) 
                in the case of qualified meals, lodging, and 
                entertainment expenses.
            ``(3) Qualified domestic travel expenses defined.--For 
        purposes of this subsection, the term `domestic travel 
        expenses' means the sum of--
                    ``(A) qualified personal travel expenses, plus
                    ``(B) qualified meals, lodging, and entertainment 
                expenses.
            ``(4) Qualified personal travel expenses.--
                    ``(A) In general.--For purposes of paragraph (3), 
                the term `qualified personal travel expenses' means 
                reasonable expenses in connection with a qualifying 
                personal trip for--
                            ``(i) travel by aircraft, rail, watercraft, 
                        or motor vehicle, and
                            ``(ii) lodging while away from home at any 
                        commercial lodging facility.
                Such term does not include expenses for meals, 
                entertainment, amusement, or recreation.
                    ``(B) Qualifying personal trip.--
                            ``(i) In general.--The term `qualifying 
                        personal trip' means travel within the United 
                        States--
                                    ``(I) the farthest destination of 
                                which is at least 100 miles from the 
                                taxpayer's residence,
                                    ``(II) involves an overnight stay 
                                at a commercial lodging facility, and
                                    ``(III) which is taken on or after 
                                the date of the enactment of this 
                                subsection.
                            ``(ii) Only personal travel included.--Such 
                        term shall not include travel if, without 
                        regard to this section, any expenses in 
                        connection with such travel are deductible in 
                        connection with a trade or business or activity 
                        for the production of income.
            ``(5) Qualified meals, lodging, and entertainment 
        expenses.--For purposes of this subsection, the term `qualified 
        meals, lodging, and entertainment expenses' means expenses for 
        food, beverages, lodging at a commercial facility, 
        entertainment, amusement, or recreation furnished in a trade or 
        business establishment in New York City during the period 
        beginning on the date of the enactment of this subsection and 
        ending on the last day of the first taxable year beginning 
        after December 31, 2001.
            ``(6) Commercial lodging facility.--For purposes of this 
        subsection, the term `commercial lodging facility' includes any 
        hotel, motel, resort, rooming house, or campground.
            ``(7) Special rules.--
                    ``(A) Substantiation.--For purposes of this 
                subsection, rules similar to the rules of section 
                274(d) shall apply.
                    ``(B) Related person.--No deduction shall be 
                allowed under paragraph (1) for an expense for food, 
                beverages, lodging, entertainment, amusement, or 
                recreation furnished by a related person (within the 
                meaning of section 144(a)(3)(A)).
            ``(8) Illegal activities.--No deduction shall be allowed 
        under paragraph (1) for any amount paid or incurred in 
        connection with a violation of a criminal law.
            ``(9) Denial of double benefit.--No deduction shall be 
        allowed under paragraph (1) for any expense for which a 
        deduction or credit is allowed under any other provision of 
        this chapter.''.
            (2) Deduction allowed in computing adjusted gross income.--
        Section 62(a) of such Code is amended by inserting after 
        paragraph (18) the following:
            ``(19) Domestic travel expenses.--The deduction allowed by 
        section 262(c).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
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