Service Worker Economic Stabilization Act
Bill: H.R.9231 | Sponsor: Rep. LaHood, Darin (R-IL)
Policy area: Taxation

Summary:
Service Worker Economic Stabilization Act
This bill suspends the disallowance of the tax deduction for business-related entertainment expenses in taxable years beginning in 2023 through 2024 and extends through 2024 the 100% deduction for business meals.

To amend the Internal Revenue Code of 1986 to provide for a temporary 
 allowance for entertainment business expenses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Service Worker Economic 
Stabilization Act''.

SEC. 2. TEMPORARY ALLOWANCE FOR ENTERTAINMENT BUSINESS EXPENSES AND 
              SIMILAR BUSINESS EXPENSES.

    (a) In General.--Section 274 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(q) Special Rules for Taxable Years 2023 Through 2024.--In the 
case of a taxable year beginning after December 31, 2022, and before 
January 1, 2025--
            ``(1) subsection (a)(1)(A) shall not apply to any expense 
        directly related to the active conduct of the taxpayer's trade 
        or business,
            ``(2) 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) in determining the amount allowable as a deduction 
        under this chapter for any ticket for any facility described in 
        paragraph (2), the amount taken into account shall not exceed 
        the face value of such ticket,
            ``(4) 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 respect to a facility used in 
        connection with such activity, shall not exceed 50 percent of 
        the amount of such expense or item which would (but for this 
        paragraph) be allowable as a deduction under this chapter, and
            ``(5) paragraph (4) shall not apply to any expense if--
                    ``(A) such expense is described in paragraph (2), 
                (3), (4), (6), (7), (8), or (9) of subsection (e), or
                    ``(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).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2022.

SEC. 3. TEMPORARY ALLOWANCE OF FULL DEDUCTION FOR BUSINESS MEALS.

    (a) In General.--Section 274(n)(2)(D)(ii) of the Internal Revenue 
Code of 1986 is amended by striking ``January 1, 2023'' and inserting 
``January 1, 2025''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2022.
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