I
107TH CONGRESS
1ST SESSION
H. R. 3143
To amend the Internal Revenue Code of 1986 to encourage the patronage
of the travel, hospitality, restaurant, and entertainment industries.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 16, 2001
Mr. REYNOLDS (for himself and Mrs. MALONEY of New York) 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 travel, hospitality, restaurant, and
entertainment industries.
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 ‘‘Freedom to Travel
Act of 2001’’.
SEC. 2. TRAVEL, MEALS, ENTERTAINMENT, AND LODGING
EXPENSES.
(a) BUSINESS DEDUCTION.—Paragraph (1) of sec-
tion 274(n) of the Internal Revenue Code of 1986 (relat-
ing to only 50 percent of meal and entertainment expenses
‘‘(3) QUALIFIED DOMESTIC TRAVEL EXPENSES
DEFINED.—For purposes of this subsection, the
term ‘domestic travel expenses’ means the sum of—
‘‘(A) qualified personal travel expenses,
plus
‘‘(B) qualified meals, lodging, and enter-
tainment expenses.
‘‘(4) 
QUALIFIED
PERSONAL
TRAVEL
EX-
PENSES.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (3), the term ‘qualified personal travel
expenses’ means reasonable expenses in connec-
tion with a qualifying personal trip for—
‘‘(i) travel by aircraft, rail, watercraft,
or motor vehicle, and
‘‘(ii) lodging while away from home at
any commercial lodging facility.
Such term does not include expenses for meals,
entertainment, amusement, or recreation.
‘‘(B) QUALIFYING PERSONAL TRIP.—
‘‘(i) IN GENERAL.—The term ‘quali-
fying personal trip’ means travel within the
United States—
‘‘(I) the farthest destination of
which is at least 100 miles from the
taxpayer’s residence,
‘‘(II) involves an overnight stay
at a commercial lodging facility, and
‘‘(III) which is taken on or after
the date of the enactment of this sub-
section.
‘‘(ii) ONLY
PERSONAL
TRAVEL
IN-
CLUDED.—Such term shall not include
travel if, without regard to this section,
any expenses in connection with such trav-
el are deductible in connection with a trade
or business or activity for the production
of income.
‘‘(5) QUALIFIED MEALS, LODGING, AND ENTER-
TAINMENT EXPENSES.—For purposes of this sub-
section, the term ‘qualified meals, lodging, and en-
tertainment expenses’ means expenses for food, bev-
erages, lodging at a commercial facility, entertain-
ment, 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 this subsection and ending on the last day of the
first taxable year beginning after December 31,
2001.
‘‘(6) COMMERCIAL
LODGING
FACILITY.—For
purposes of this subsection, the term ‘commercial
lodging facility’ includes any hotel, motel, resort,
rooming house, or campground.
‘‘(7) 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)).
‘‘(8) 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.
‘‘(9) 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) DOMESTIC TRAVEL EXPENSES.—The de-
duction allowed 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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