[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 831 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 831

To amend the Internal Revenue Code of 1986 to provide for a 100 percent 
                     deduction for business meals.


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                   IN THE SENATE OF THE UNITED STATES

                              May 3, 2001

  Mr. Shelby 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 provide for a 100 percent 
                     deduction for business meals.

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

SECTION 1. INCREASED DEDUCTION FOR BUSINESS MEAL EXPENSES.

    (a) In General.--Section 274(n)(1) (relating to only 50 percent of 
meal and entertainment expenses allowed as deduction) is amended by 
striking ``50 percent'' in the text and inserting ``the allowable 
percentage''.
    (b) Allowable Percentage.--Section 274(n) is amended by--
            (1) striking paragraph (3);
            (2) redesignating paragraph (2) as paragraph (3); and
            (3) inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Allowable percentage.--For purposes of paragraph (1), 
        the allowable percentage is--
                    ``(A) in the case of amounts for items described in 
                paragraph (1)(B), 50 percent, and
                    ``(B) in the case of expenses for food or 
                beverages, 100 percent.''.
    (c) Conforming Amendment.--The heading for subsection (n) of 
section 274 is amended by striking ``50 Percent'' and inserting 
``Limited Percentages''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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