I
107TH CONGRESS
1ST SESSION
H. R. 2940
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 HOUSE OF REPRESENTATIVES
SEPTEMBER 21, 2001
Mrs. MALONEY of New York (for herself and Mr. REYNOLDS) 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 encourage
the patronage of the hospitality, restaurant, and enter-
tainment industries of New York City.
Be it enacted by the Senate and House of Representa-
tives 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 sec-
tion 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 ENTER-
TAINMENT 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 ENTER-
TAINMENT 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 PRO-
VIDED IN NEW YORK CITY.—
‘‘(1) IN
GENERAL.—Subsection (a) shall not
apply to an amount equal to 50 percent of the ex-
penses 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 ac-
count 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 sec-
tion 274(d) shall apply.
‘‘(B) RELATED
PERSON.—No deduction
shall be allowed under paragraph (1) for an ex-
pense for food, beverages, lodging, entertain-
ment, 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 crimi-
nal law.
‘‘(5) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion 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 AD-
JUSTED
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 al-
lowed 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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