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.
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 ‘‘Travel and Tourism
Relief Act of 1995’’.
SEC. 2. CERTAIN TRAVEL AGENTS NOT TREATED AS EM-
PLOYEES.
(a) IN GENERAL.—Subsection (a) of section 3508 of
the Internal Revenue Code of 1986 (relating to treatment
of real estate agents and direct sellers) is amended by
striking ‘‘or as a direct seller’’ and inserting ‘‘, as a direct
seller, or as a qualified travel agent’’.
(b) QUALIFIED TRAVEL AGENT.—Subsection (b) of
section 3508 of such Code is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after
paragraph (2) the following new paragraph:
‘‘(3) QUALIFIED TRAVEL AGENT.—The term
‘qualified travel agent’ means any individual if—
‘‘(A) such individual is providing services
for—
‘‘(i) a travel agency appointed by 1 or
more commercial airlines, or
‘‘(ii) a travel agency affiliated with
the Cruise Lines International Association
(CLIA),
‘‘(B) substantially all of the remuneration
(whether or not paid in cash) for the services
performed by such individual as a travel agent
is directly related to sales or other output (in-
cluding the performance of services) rather
than to the number of hours worked, and
‘‘(C) the services performed by the individ-
ual are performed pursuant to a written con-
tract between such individual and the person
for whom the services are performed and such
contract provides that the individual will not be
treated as an employee with respect to such
services for Federal tax purposes.’’
(c) CLERICAL AMENDMENTS.—
(1) The section heading of section 3508 of such
Code is amended by striking ‘‘AND DIRECT SELL-
ERS’’ and inserting ‘‘, DIRECT
SELLERS, AND
TRAVEL AGENTS’’.
(2) The table of sections for chapter 25 is
amended by striking ‘‘and direct sellers’’ in the item
relating to section 3508 and inserting ‘‘, direct sell-
ers, and travel agents’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to services performed after the
date of the enactment of this Act.
SEC. 3. INCREASE IN AMOUNT OF DEDUCTION FOR BUSI-
NESS MEALS AND ENTERTAINMENT.
(a) GENERAL RULE.—Paragraph (1) of section
274(n) of the Internal Revenue Code of 1986 (relating to
only 50 percent of meal and entertainment expenses al-
lowed as deduction) is amended by striking ‘‘50 percent’’
and inserting ‘‘80 percent’’.
(b) CONFORMING
AMENDMENT.—The subsection
heading for section 274(n) of such Code is amended by
striking ‘‘50’’ and inserting ‘‘80’’.
(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.
SEC. 4. REPEAL OF SCHEDULED INCREASE IN TAX ON FUEL
USED IN COMMERCIAL AVIATION.
(a) IN GENERAL.—The first sentence of section
4092(b) of the Internal Revenue Code of 1986 (relating
to exemptions) is amended by striking ‘‘is attributable
to—’’ and all that follows and inserting ‘‘is attributable
to the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (4) of section 6427(l) of such
Code is amended by striking ‘‘is attributable to—’’
and all that follows and inserting ‘‘is attributable to
the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section.’’
(2) Section 13245 of the Omnibus Budget Rec-
onciliation Act of 1993 is hereby repealed.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on September 30, 1995.
SEC. 5. DEDUCTION FOR PROMOTION OF TOURISM IN THE
UNITED STATES.
(a) IN GENERAL.—Section 162 of the Internal Reve-
nue Code of 1986 (relating to trade or business expenses)
is amended by redesignating subsection (o) as subsection
(p) and by inserting after subsection (n) the following new
subsection:
‘‘(o) EXPENSES PROMOTING TOURISM IN THE UNIT-
ED STATES.—In the case of a taxpayer engaged in a trade
or business, there shall be allowed as a deduction under
this section any amount paid or incurred to promote tour-
ism to the United States by individuals who are not resi-
dents of the United States. The preceding sentence shall
apply only to amounts which are not otherwise allowable
as a deduction under this chapter.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to amounts paid or incurred after
the date of the enactment of this Act.
SEC. 6. DEDUCTION ALLOWED FOR CONVENTIONS ON FOR-
EIGN-FLAGGED CRUISE SHIPS.
(a) IN GENERAL.—The first sentence of paragraph
(2) of section 274(h) of the Internal Revenue Code of
1986 (relating to attendance at conventions, etc.) is
amended by striking ‘‘business and that—’’ and all that
follows and inserting ‘‘business.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to cruises beginning after the date
of the enactment of this Act.
Æ