I

104TH CONGRESS

1ST SESSION H. R. 1083

To amend the Internal Revenue Code of 1986 to promote travel and tourism.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 28, 1995

Mr. ROTH 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 promote

travel and tourism.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Travel and Tourism

5 Relief Act of 1995’’.

6 SEC. 2. CERTAIN TRAVEL AGENTS NOT TREATED AS EM7 PLOYEES.

8 (a) IN GENERAL.—Subsection (a) of section 3508 of

9 the Internal Revenue Code of 1986 (relating to treatment

10 of real estate agents and direct sellers) is amended by
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1 striking ‘‘or as a direct seller’’ and inserting ‘‘, as a direct

2 seller, or as a qualified travel agent’’.

3 (b) QUALIFIED TRAVEL AGENT.—Subsection (b) of

4 section 3508 of such Code is amended by redesignating

5 paragraph (3) as paragraph (4) and by inserting after

6 paragraph (2) the following new paragraph:

7 ‘‘(3) QUALIFIED TRAVEL AGENT.—The term

8 ‘qualified travel agent’ means any individual if—

9 ‘‘(A) such individual is providing services

10 for—

11 ‘‘(i) a travel agency appointed by 1 or

12 more commercial airlines, or

13 ‘‘(ii) a travel agency affiliated with

14 the Cruise Lines International Association

15 (CLIA),

16 ‘‘(B) substantially all of the remuneration

17 (whether or not paid in cash) for the services

18 performed by such individual as a travel agent

19 is directly related to sales or other output (in20 cluding the performance of services) rather

21 than to the number of hours worked, and

22 ‘‘(C) the services performed by the individ23 ual are performed pursuant to a written con24 tract between such individual and the person

25 for whom the services are performed and such
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1 contract provides that the individual will not be

2 treated as an employee with respect to such

3 services for Federal tax purposes.’’

4 (c) CLERICAL AMENDMENTS.—

5 (1) The section heading of section 3508 of such

6 Code is amended by striking ‘‘AND DIRECT SELL7 ERS’’ and inserting ‘‘, DIRECT SELLERS, AND

8 TRAVEL AGENTS’’.

9 (2) The table of sections for chapter 25 is

10 amended by striking ‘‘and direct sellers’’ in the item

11 relating to section 3508 and inserting ‘‘, direct sell12 ers, and travel agents’’.

13 (d) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to services performed after the

15 date of the enactment of this Act.

16 SEC. 3. INCREASE IN AMOUNT OF DEDUCTION FOR BUSI17 NESS MEALS AND ENTERTAINMENT.

18 (a) GENERAL RULE.—Paragraph (1) of section

19 274(n) of the Internal Revenue Code of 1986 (relating to

20 only 50 percent of meal and entertainment expenses al21 lowed as deduction) is amended by striking ‘‘50 percent’’

22 and inserting ‘‘80 percent’’.

23 (b) CONFORMING AMENDMENT.—The subsection

24 heading for section 274(n) of such Code is amended by

25 striking ‘‘50’’ and inserting ‘‘80’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to amounts paid or incurred after

3 the date of the enactment of this Act.

4 SEC. 4. REPEAL OF SCHEDULED INCREASE IN TAX ON FUEL

5 USED IN COMMERCIAL AVIATION.

6 (a) IN GENERAL.—The first sentence of section

7 4092(b) of the Internal Revenue Code of 1986 (relating

8 to exemptions) is amended by striking ‘‘is attributable

9 to—’’ and all that follows and inserting ‘‘is attributable

10 to the Leaking Underground Storage Tank Trust Fund

11 financing rate imposed by such section.’’

12 (b) CONFORMING AMENDMENTS.—

13 (1) Paragraph (4) of section 6427(l) of such

14 Code is amended by striking ‘‘is attributable to—’’

15 and all that follows and inserting ‘‘is attributable to

16 the Leaking Underground Storage Tank Trust Fund

17 financing rate imposed by such section.’’

18 (2) Section 13245 of the Omnibus Budget Rec19 onciliation Act of 1993 is hereby repealed.

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall take effect on September 30, 1995.

22 SEC. 5. DEDUCTION FOR PROMOTION OF TOURISM IN THE

23 UNITED STATES.

24 (a) IN GENERAL.—Section 162 of the Internal Reve25 nue Code of 1986 (relating to trade or business expenses)
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1 is amended by redesignating subsection (o) as subsection

2 (p) and by inserting after subsection (n) the following new

3 subsection:

4 ‘‘(o) EXPENSES PROMOTING TOURISM IN THE UNIT5 ED STATES.—In the case of a taxpayer engaged in a trade

6 or business, there shall be allowed as a deduction under

7 this section any amount paid or incurred to promote tour8 ism to the United States by individuals who are not resi9 dents of the United States. The preceding sentence shall

10 apply only to amounts which are not otherwise allowable

11 as a deduction under this chapter.’’

12 (b) EFFECTIVE DATE.—The amendment made by

13 this section shall apply to amounts paid or incurred after

14 the date of the enactment of this Act.

15 SEC. 6. DEDUCTION ALLOWED FOR CONVENTIONS ON FOR16 EIGN-FLAGGED CRUISE SHIPS.

17 (a) IN GENERAL.—The first sentence of paragraph

18 (2) of section 274(h) of the Internal Revenue Code of

19 1986 (relating to attendance at conventions, etc.) is

20 amended by striking ‘‘business and that—’’ and all that

21 follows and inserting ‘‘business.’’.

22 (b) EFFECTIVE DATE.—The amendment made by

23 this section shall apply to cruises beginning after the date

24 of the enactment of this Act.

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