II
109th CONGRESS
1st Session
S. 298
IN THE SENATE OF THE UNITED STATES
February 7, 2005
Mr. Inouye introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to repeal the reduction in the deductible portion of expenses for business meals and entertainment.
Repeal of reduction in business meals and entertainment tax deduction
In general
Section 274(n)(1) of the Internal Revenue Code of 1986
(relating to only 50 percent of meal and entertainment expenses allowed as
deduction) is amended by striking 50 percent
and inserting
the applicable percentage
.
Applicable percentage
Section 274(n) of the Internal Revenue Code of 1986 is amended by striking paragraph (3) and inserting the following:
Applicable percentage
For purposes of paragraph (1), the term applicable percentage means the percentage determined under the following table:
| For taxable years beginning | The applicable |
| in calendar year— | percentage is— |
| 2005 | 70 |
| 2006 or 2007 | 75 |
| 2008 or thereafter | 80. |
.
Conforming amendment
The heading for section 274(n) of the Internal Revenue
Code of 1986 is amended by striking Only 50
percent
and inserting Portion
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2004.