I 

109TH CONGRESS 

1ST SESSION H. R. 1521 

To amend the Internal Revenue Code of 1986 to deny all deductions for 

business expenses associated with the use of a club that discriminates 

on the basis of sex, race, or color. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2005 

Mrs. MALONEY (for herself, Mr. SHERMAN, Ms. BORDALLO, Mr. FRANK of 

Massachusetts, Mr. PAYNE, Mr. CUMMINGS, Ms. SLAUGHTER, Mr. OBERSTAR, Mr. OWENS, Mr. ABERCROMBIE, Ms. WATSON, Ms. JACKSON-LEE

of Texas, Ms. MILLENDER-MCDONALD, Mr. BROWN of Ohio, and Mr. 

EVANS) 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 deny all 

deductions for business expenses associated with the use 

of a club that discriminates on the basis of sex, race, 

or color. 

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 ‘‘Ending Tax Breaks 

5 for Discrimination Act of 2005’’. 
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1 SEC. 2. DENIAL OF DEDUCTION FOR BUSINESS EXPENSES 

2 FOR USE OF CLUB THAT DISCRIMINATES ON 

3 BASIS OF SEX, RACE, OR COLOR. 

4 (a) IN GENERAL.—Section 162 of the Internal Rev5 enue Code of 1986 (relating to trade or business expenses) 

6 is amended by redesignating subsection (q) as subsection 

7 (r) and by inserting after subsection (p) the following new 

8 subsection: 

9 ‘‘(q) DENIAL OF DEDUCTION FOR USE OF CLUB

10 THAT DISCRIMINATES ON BASIS OF SEX, RACE, OR

11 COLOR; DENIAL OF DEDUCTION FOR CERTAIN ADVER12 TISING EXPENSES.— 

13 ‘‘(1) IN GENERAL.—No deduction shall be al14 lowed under this section for any amount paid or in15 curred— 

16 ‘‘(A) to any private discriminatory club, 

17 ‘‘(B) for the use of services or facilities of 

18 any private discriminatory club, or 

19 ‘‘(C) for transportation, meals, lodging, 

20 and other traveling expenses (not described in 

21 subparagraph (A) or (B)) incurred in connec22 tion with such use. 

23 ‘‘(2) ADVERTISING EXPENSES.—No deduction 

24 shall be allowed under this section for any amount 

25 paid or incurred for— 
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1 ‘‘(A) advertising of any event held at any 

2 facility of a discriminatory club, or 

3 ‘‘(B) advertising for any product or service 

4 if the advertising occurs on any broadcast 

5 media during, or in association with, such me6 dia’s coverage of any such an event. 

7 ‘‘(3) PRIVATE DISCRIMINATORY CLUB.—For 

8 purposes of this subsection, the term ‘private dis9 criminatory club’ means any club organized for busi10 ness, pleasure, recreation, or other social purpose if 

11 such club restricts its membership or the use of its 

12 services or facilities on the basis of sex, race, or 

13 color. 

14 ‘‘(4) RECEIPTS TO STATE NONDEDUCTIBILITY

15 OF EXPENSES.—All receipts for any expense which 

16 is not allowed as a deduction under this section by 

17 reason of subsection (a) shall include the following 

18 statement: ‘The expenditures covered by this receipt 

19 are nondeductible for Federal income tax pur20 poses.’ ’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to amounts paid or incurred after 

23 the date of the enactment of this Act. 

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