SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Travel and Tourism Relief Act of 
1995''.

SEC. 2. CERTAIN TRAVEL AGENTS NOT TREATED AS EMPLOYEES.

    (a) In General.--Subsection (a) of section 3508 of the Internal 
Revenue Code of 1986 (relating to treatment of real estate agents and 
direct sellers) is amended by striking ``or as a direct seller'' and 
inserting ``, as a direct seller, or as a qualified travel agent''.
    (b) Qualified Travel Agent.--Subsection (b) of section 3508 of such 
Code is amended by redesignating paragraph (3) as paragraph (4) and by 
inserting after paragraph (2) the following new paragraph:
            ``(3) Qualified Travel Agent.--The term `qualified travel 
        agent' means any individual if--
                    ``(A) such individual is providing services for--
                            ``(i) a travel agency appointed by 1 or 
                        more commercial airlines, or
                            ``(ii) a travel agency affiliated with the 
                        Cruise Lines International Association (CLIA),
                    ``(B) substantially all of the remuneration 
                (whether or not paid in cash) for the services 
                performed by such individual as a travel agent is 
                directly related to sales or other output (including 
                the performance of services) rather than to the number 
                of hours worked, and
                    ``(C) the services performed by the individual are 
                performed pursuant to a written contract between such 
                individual and the person for whom the services are 
                performed and such contract provides that the 
                individual will not be treated as an employee with 
                respect to such services for Federal tax purposes.''
    (c) Clerical Amendments.--
            (1) The section heading of section 3508 of such Code is 
        amended by striking ``and direct sellers'' and inserting ``, 
        direct sellers, and travel agents''.
            (2) The table of sections for chapter 25 is amended by 
        striking ``and direct sellers'' in the item relating to section 
        3508 and inserting ``, direct sellers, and travel agents''.
    (d) Effective Date.--The amendments made by this section shall 
apply to services performed after the date of the enactment of this 
Act.

SEC. 3. INCREASE IN AMOUNT OF DEDUCTION FOR BUSINESS MEALS AND 
              ENTERTAINMENT.

    (a) General Rule.--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 striking 
``50 percent'' and inserting ``80 percent''.
    (b) Conforming Amendment.--The subsection heading for section 
274(n) of such Code is amended by striking ``50'' and inserting ``80''.
    (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.

SEC. 4. REPEAL OF SCHEDULED INCREASE IN TAX ON FUEL USED IN COMMERCIAL 
              AVIATION.

    (a) In General.--The first sentence of section 4092(b) of the 
Internal Revenue Code of 1986 (relating to exemptions) is amended by 
striking ``is attributable to--'' and all that follows and inserting 
``is attributable to the Leaking Underground Storage Tank Trust Fund 
financing rate imposed by such section.''
    (b) Conforming Amendments.--
            (1) Paragraph (4) of section 6427(l) of such Code is 
        amended by striking ``is attributable to--'' and all that 
        follows and inserting ``is attributable to the Leaking 
        Underground Storage Tank Trust Fund financing rate imposed by 
        such section.''
            (2) Section 13245 of the Omnibus Budget Reconciliation Act 
        of 1993 is hereby repealed.
    (c) Effective Date.--The amendments made by this section shall take 
effect on September 30, 1995.

SEC. 5. DEDUCTION FOR PROMOTION OF TOURISM IN THE UNITED STATES.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
(relating to trade or business expenses) is amended by redesignating 
subsection (o) as subsection (p) and by inserting after subsection (n) 
the following new subsection:
    ``(o) Expenses Promoting Tourism in the United States.--In the case 
of a taxpayer engaged in a trade or business, there shall be allowed as 
a deduction under this section any amount paid or incurred to promote 
tourism to the United States by individuals who are not residents of 
the United States. The preceding sentence shall apply only to amounts 
which are not otherwise allowable as a deduction under this chapter.''
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after the date of the enactment of this 
Act.

SEC. 6. DEDUCTION ALLOWED FOR CONVENTIONS ON FOREIGN-FLAGGED CRUISE 
              SHIPS.

    (a) In General.--The first sentence of paragraph (2) of section 
274(h) of the Internal Revenue Code of 1986 (relating to attendance at 
conventions, etc.) is amended by striking ``business and that--'' and 
all that follows and inserting ``business.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to cruises beginning after the date of the enactment of this Act.
Travel and Tourism Relief Act of 1995 - Amends the Internal Revenue Code to provide that qualified travel agents shall not be treated as employees for purposes of employment taxes. 
Increases the deduction for business meals and entertainment from 50 percent to 80 percent of allowable expenses. 
Repeals the scheduled increase in the rate of tax on fuel used in commercial aviation. 
Allows an itemized deduction for expenses incurred in promoting tourism to the United States by non-U.S. residents.    Allows a tax deduction for the attendance at conventions on foreign-flagged cruise ships.
Travel and Tourism Relief Act of 1995