I 
117TH CONGRESS 
1ST SESSION H. R. 1346 
To amend the Internal Revenue Code of 1986 to create a refundable tax 
credit for travel expenditures, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2021 
Mr. HORSFORD (for himself, Mr. LAHOOD, and Mr. PANETTA) 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 create 
a refundable tax credit for travel expenditures, and for 
other purposes. 
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 ‘‘Hospitality and Com-
merce Job Recovery Act of 2021’’. 
SEC. 2. ESTABLISHMENT OF TAX CREDIT TO SUPPORT THE 
CONVENTION AND TRADE SHOW INDUSTRY. 
(a) IN GENERAL.—For purposes of section 38 of the 
Internal Revenue Code of 1986, the convention and trade 
show restart credit shall be treated as a credit listed at 
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the end of subsection (b) of such section. For purposes 
of this section, the convention and trade show restart cred-
it for any taxable year is an amount equal to the sum 
of— 
(1) 50 percent of the qualified participation 
costs paid or incurred by a taxpayer during such 
taxable year, and 
(2) in the case of an eligible provider, 100 per-
cent of the qualified restart costs paid or incurred 
by such provider during such taxable year. 
(b) QUALIFIED PARTICIPATION COSTS.—For pur-
poses of this section, the term ‘‘qualified participation 
costs’’ means any costs or expenses paid or incurred by 
the taxpayer after December 31, 2020, for any employee 
or officer of the taxpayer to attend or participate in a 
qualified event, including registration fees, lodging, and 
costs with respect to carrying out an exhibition relating 
to the taxpayer. Such term shall not include any costs 
which are not necessary for the attendance or participa-
tion of such employee or officer at such event. 
(c) ELIGIBLE
PROVIDER; QUALIFIED
RESTART 
COSTS.—In this section— 
(1) ELIGIBLE PROVIDER.—The term ‘‘eligible 
provider’’ means any person which— 
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(A) provides facilities at which a qualified 
event may be held, or 
(B) sponsors, operates, or is otherwise re-
sponsible for the administration of a qualified 
event. 
(2) QUALIFIED
RESTART
COSTS.—The term 
‘‘qualified restart costs’’ means any costs paid or in-
curred by an eligible provider after December 31, 
2020, in reopening after such date a facility de-
scribed in paragraph (1)(A) which was closed or 
forced to reduce services due to the virus SARS– 
CoV–2 or coronavirus disease 2019 (referred to in 
this section as ‘‘COVID–19’’), including— 
(A) any renovation, remediation, personal 
protective equipment, cleaning, or additional 
labor and rental costs related to preventing in-
dividuals present in such facility from con-
tracting COVID–19, and 
(B) any testing of employees of the tax-
payer or guests of such facility for symptoms of 
COVID–19. 
(d) QUALIFIED EVENT.— 
(1) IN
GENERAL.—In this section, the term 
‘‘qualified event’’ means— 
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(A) a convention, seminar, or similar meet-
ing (as such terms are used in section 274 of 
the Internal Revenue Code of 1986), 
(B) a business meeting (as such term is 
used in such section), or 
(C) a trade show, 
which takes place after December 31, 2021. 
(2) TRADE SHOW.—For purposes of this sub-
section, the term ‘‘trade show’’ means any exhibition 
at which different businesses within a particular in-
dustry promote their products and services. 
(e) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under any provision of chapter 1 of the 
Internal Revenue Code of 1986 with respect to any 
amount taken in account in determining the credit allowed 
to a taxpayer under this section. 
(f) LOCATION REQUIREMENT.—No credit shall be al-
lowed under this section with respect to any qualified 
event unless such event is held within the United States 
(including any territory or possession of the United 
States). 
(g) PAYROLL CREDIT
FOR NONPROFIT EMPLOY-
ERS.— 
(1) IN GENERAL.—In the case of an organiza-
tion which is described in section 501(c) of the In-
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ternal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code, the credit deter-
mined under this section shall be allowed as a credit 
against applicable employment taxes paid by such 
organization for calendar quarters in the taxable 
year, and not treated as a credit listed at the end 
of section 38(b) of such Code. 
(2) LIMITATIONS AND REFUNDABILITY.— 
(A) CREDIT
LIMITED
TO
EMPLOYMENT 
TAXES.—The credit allowed by paragraph (1) 
with respect to calendar quarters in any taxable 
year shall not exceed the applicable employment 
taxes (reduced by any credits allowed under 
subsections (e) and (f) of section 3111 of the 
Internal Revenue Code of 1986 and sections 
7001 
and 
7003 
of 
the 
Families 
First 
Coronavirus Response Act) on the wages paid 
with respect to the employment of all the em-
ployees of the organization for such taxable 
year. 
(B) REFUNDABILITY
OF
EXCESS
CRED-
IT.— 
(i) IN GENERAL.—If the amount of 
the credit under paragraph (1) exceeds the 
limitation of subparagraph (A) for any cal-
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endar quarter, such excess shall be treated 
as an overpayment that shall be refunded 
under sections 6402(a) and 6413(b) of the 
Internal Revenue Code of 1986. 
(ii) TREATMENT OF PAYMENTS.—For 
purposes of section 1324 of title 31, 
United States Code, any amounts due to 
the employer under this paragraph shall be 
treated in the same manner as a refund 
due from a credit provision referred to in 
subsection (b)(2) of such section. 
(3) APPLICABLE
EMPLOYMENT
TAXES.—For 
purposes of this subsection, the term ‘‘applicable em-
ployment taxes’’ means the following: 
(A) The taxes imposed under section 
3111(a) of the Internal Revenue Code of 1986. 
(B) So much of the taxes imposed under 
section 3221(a) of such Code as are attrib-
utable to the rate in effect under section 
3111(a) of such Code. 
(h) REGULATIONS AND GUIDANCE.—The Secretary 
of the Treasury (or the Secretary’s delegate) may pre-
scribe such regulations and other guidance as may be ap-
propriate or necessary to carry out the purposes of this 
section. 
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(i) TERMINATION.—This section shall not apply to 
any costs paid or incurred in taxable years beginning after 
December 31, 2024. 
SEC. 3. EXTENSION OF EMPLOYEE RETENTION TAX CRED-
IT. 
(a) IN GENERAL.—Section 2301(m) of the CARES 
Act (Public Law 116–136) is amended by striking ‘‘July 
1, 2021’’ and inserting ‘‘January 1, 2022’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar quarters beginning 
after June 30, 2021. 
SEC. 4. SUSPENSION OF LIMITATION ON ENTERTAINMENT, 
ETC. EXPENSES RELATED TO TRADE OR BUSI-
NESS. 
(a) IN GENERAL.—Section 274 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(q) SPECIAL RULES FOR TAXABLE YEARS 2021 
THROUGH 2022.—In the case of a taxable year beginning 
after December 31, 2020, and before January 1, 2023— 
‘‘(1) subsection (a)(1)(A) shall not apply to any 
expense if the taxpayer establishes that the item was 
directly related to, or, in the case of an item directly 
preceding or following a substantial and bona fide 
business discussion (including business meetings at 
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a convention or otherwise), that such item was asso-
ciated with, the active conduct of the taxpayer’s 
trade or business, except that the deduction under 
this section with respect to any such expense shall 
in no event exceed the portion of such expense with 
respect to which the taxpayer so establishes, 
‘‘(2) in the case of a club, subsection (a)(1)(B) 
shall not apply if the taxpayer establishes that the 
facility was used primarily for the furtherance of the 
taxpayer’s trade or business and that the item was 
directly related to the active conduct of such trade 
or business, 
‘‘(3) no deduction or credit shall be allowed for 
any item (not including any qualified nonpersonal 
use vehicle (as defined in subsection (i)) with respect 
to an activity which is of a type generally considered 
to constitute entertainment, amusement, or recre-
ation, or with respect to a facility used in connection 
with such an activity, unless the taxpayer substan-
tiates by adequate records or by sufficient evidence 
corroborating the taxpayer’s own statement— 
‘‘(A) the amount of such expense or other 
item, 
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‘‘(B) the time and place of the entertain-
ment, amusement, recreation, or use of the fa-
cility or property, 
‘‘(C) the business purpose of the expense 
or other item, and 
‘‘(D) the business relationship to the tax-
payer of the persons entertained or using the 
facility or property, 
except as the Secretary may by regulations provide 
in the case of an expense which does not exceed an 
amount prescribed pursuant to such regulations, 
‘‘(4) in determining the amount allowable as a 
deduction under this chapter for any ticket for any 
activity or facility described in paragraph (3), the 
amount taken into account shall not exceed the face 
value of such ticket, except that— 
‘‘(A) this paragraph shall not apply to any 
ticket for any sports event— 
‘‘(i) which is organized for the pri-
mary purpose of benefiting an organization 
which is described in section 501(c)(3) and 
exempt from tax under section 501(a), 
‘‘(ii) all of the net proceeds of which 
are contributed to such organization, and 
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‘‘(iii) which utilizes volunteers for sub-
stantially all of the work performed in car-
rying out such event, and 
‘‘(B) in the case of a skybox or other pri-
vate luxury box leased for more than 1 event, 
the amount allowable as a deduction under this 
chapter with respect to such events shall not ex-
ceed the sum of the face value of non-luxury 
box seat tickets for the seats in such box cov-
ered by the lease (determined by treating 2 or 
more related leases as 1 lease), 
‘‘(5) the amount allowable as a deduction under 
this chapter for any item with respect to an activity 
which is of a type generally considered to constitute 
entertainment, amusement, or recreation, or with re-
spect to a facility used in connection with such activ-
ity, shall not exceed 50 percent of the amount of 
such expense or item which would (but for this para-
graph) be allowable as a deduction under this chap-
ter, and 
‘‘(6) paragraph (5) shall not apply to any ex-
pense if— 
‘‘(A) such expense is described in para-
graph (2), (3), (4), (7), (8), or (9) of subsection 
(e), 
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‘‘(B) such expense is excludable from the 
gross income of the recipient under section 132 
by reason of subsection (e) thereof (relating to 
de minimis fringes), or 
‘‘(C) such expense is covered by a package 
involving a ticket described in paragraph 
(4)(A).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 5. ESTABLISHMENT OF TAX CREDIT TO SUPPORT THE 
RESTAURANT INDUSTRY. 
(a) IN GENERAL.—For purposes of section 38 of the 
Internal Revenue Code of 1986, in the case of an eligible 
taxpayer, the restaurant and dining restart credit shall be 
treated as a credit listed at the end of subsection (b) of 
such section. For purposes of this section, the restaurant 
and dining restart credit for any taxable year is an amount 
equal to the qualified restart costs paid or incurred by the 
eligible taxpayer during the taxable year. 
(b) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion, the term ‘‘eligible taxpayer’’ means a taxpayer— 
(1) which owns a trade or business devoted to 
preparation of food and beverages for on-premises 
consumption or carry out (not including a trade or 
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business which sells items other than prepared food 
and beverages), or 
(2) which owns property on which such a trade 
or business operates, if more than 50 percent of the 
square footage of such property is devoted to prepa-
ration of, and seating for on-premises consumption 
of, prepared meals. 
(c) QUALIFIED RESTART COSTS.—For purposes of 
this section, the term ‘‘qualified restart costs’’ means any 
costs paid or incurred by an eligible taxpayer on or after 
the date of the enactment of this Act in reopening a trade 
or business or property described in subsection (b), or in-
creasing meal and beverage services provided by such 
trade or business or at such property, which was closed 
or forced to reduce services due to the virus SARS–CoV– 
2 or coronavirus disease 2019 (referred to in this section 
as ‘‘COVID–19’’), including— 
(1) any renovation, remediation, or additional 
labor and rental costs related to preventing individ-
uals present at such trade or business or on such 
property from contracting COVID–19; and 
(2) any testing of employees of the eligible tax-
payer or guests of such trade or business or such 
property for symptoms of COVID–19. 
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For purposes of the preceding sentence, a trade or busi-
ness shall be treated as having reduced services if such 
trade or business reduced hours of operation, number of 
employees or employee hours, or capacity of seating areas, 
closed seating areas, or took any other measures which 
reduced services provided or operations of the trade or 
business as determined by the Secretary of the Treasury. 
(d) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under any provision of chapter 1 of the 
Internal Revenue Code of 1986 with respect to any 
amount taken in account in determining the credit allowed 
to a taxpayer under this section. 
(e) REGULATIONS AND GUIDANCE.—The Secretary 
of the Treasury (or the Secretary’s delegate) may pre-
scribe such regulations and other guidance as may be ap-
propriate or necessary to carry out the purposes of this 
section. 
(f) TERMINATION.—This section shall not apply to 
any costs paid or incurred in taxable years beginning after 
December 31, 2022. 
SEC. 6. CREDIT FOR TRAVEL EXPENDITURES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36 the fol-
lowing new section: 
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‘‘SEC. 36A. CREDIT FOR TRAVEL EXPENDITURES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who pays or incurs any qualified travel expenses 
during a taxable year, there shall be allowed as a credit 
against the tax imposed by this subtitle for such taxable 
year an amount equal to 50 percent of such expenses. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR LIMITATION.—The credit allowed 
under subsection (a) for any taxable year shall not 
exceed the sum of— 
‘‘(A) $1,500 ($750 in the case of a mar-
ried individual filing a separate return), plus 
‘‘(B) $500 for each qualifying child (as de-
fined in section 152(c)) of the individual, but 
not to exceed $1,500. 
‘‘(2) LIMITATION BASED ON ADJUSTED GROSS 
INCOME.— 
‘‘(A) IN GENERAL.—The amount allowable 
as a credit under subsection (a) (after the ap-
plication of paragraph (1) and determined with-
out regard to this paragraph) for the taxable 
year shall be reduced (but not below zero) by 
$2 for every $50 by which the taxpayer’s modi-
fied adjusted gross income for such taxable year 
exceeds $75,000 ($150,000 in the case of a 
joint return). 
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‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—The term ‘modified adjusted gross in-
come’ means the adjusted gross income of the 
taxpayer for the taxable year increased by any 
amount excluded from gross income under sec-
tion 911, 931, or 933. 
‘‘(c) QUALIFIED TRAVEL EXPENSE.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified travel 
expense’ means any amount paid or incurred for 
travel within the United States which is at least 50 
miles from the individual’s home and includes an 
overnight stay, including amounts paid or incurred 
for food and beverages, lodging, recreation, trans-
portation, amusement or entertainment, including 
live entertainment and sporting events, and gasoline. 
‘‘(2) MINIMUM AMOUNT.—Any expense (deter-
mined by treating all items on a single receipt as 1 
expense) which is less than $25 shall not be taken 
into account under paragraph (1). 
‘‘(3) UNITED
STATES.—The term ‘United 
States’ includes the territories and possessions of the 
United States. 
‘‘(4) EXCEPTION.—For purposes of paragraph 
(1), amounts paid with respect to a residence or 
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other lodging owned by the individual shall not be 
treated as qualified travel expenses. 
‘‘(d) ELECTION TO CARRY CREDIT TO PRECEDING 
YEAR.—At the election of the taxpayer, any credit allow-
able under this section for a taxable year may be carried 
back (in its entirety) to the preceding taxable year and 
treated as a credit allowed under this subpart for such 
year. 
‘‘(e) RESTRICTIONS.—No credit shall be allowed to 
an individual under subsection (a) with respect to a quali-
fied travel expense if— 
‘‘(1) the individual receives a refund or reim-
bursement from any person for the expense, 
‘‘(2) a deduction is allowed under section 162 
with respect to the expense, 
‘‘(3) a deduction under section 151 with respect 
to individual is allowable to another taxpayer for 
such taxable year, or 
‘‘(4) the individual does not attach sufficient 
evidence of the expense, as prescribed by the Sec-
retary, to the return of tax for such taxable year. 
‘‘(f) TERMINATION.—This section shall not apply to 
any qualified travel expenses paid or incurred after De-
cember 31, 2023.’’. 
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