[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1487 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1487

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2001

  Mr. Schumer (for himself and Mrs. Clinton) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


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

    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 ``I Love New York Tax Deduction Act of 
2001''.

SEC. 2. MEALS, ENTERTAINMENT, AND LODGING EXPENSES IN NEW YORK CITY.

    (a) Increase in Deduction for Business Meal and Entertainment 
Expenses.--Subsection (n) of section 274 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:
            ``(4) Special rule for meals and entertainment provided in 
        new york city.--In the case of food, beverages, entertainment, 
        amusement, and recreation furnished in New York City during the 
        period beginning on the date of the enactment of the I Love New 
        York Tax Deduction Act of 2001 and ending on the last day of 
        the first taxable year beginning after December 31, 2001, 
        paragraph (1) shall be applied by substituting `80 percent' for 
        `50 percent'.''.
    (b) Deduction for Personal Meal and Entertainment Expenses.--
            (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) Meals, Lodging, and Entertainment Provided in New York 
City.--
            ``(1) In general.--Subsection (a) shall not apply to an 
        amount equal to 50 percent of the expenses paid or incurred for 
        food, beverages, lodging, 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 the I Love New York Tax Deduction Act of 2001 and 
        ending on the last day of the first taxable year beginning 
        after December 31, 2001.
            ``(2) Limitation.--The amount taken into account under 
        paragraph (1) for such taxable year shall not exceed $500 
        ($1,000 in the case of joint return).
            ``(3) 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)).
            ``(4) 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.
            ``(5) 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) Meals, lodging, and entertainment provided in new 
        york city.--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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