INCREASED DEDUCTIBILITY OF BUSINESS MEAL EXPENSES FOR INDIVIDUALS SUBJECT TO FEDERAL HOURS OF SERVICE.

SEC. 969. INCREASED DEDUCTIBILITY OF BUSINESS MEAL EXPENSES FOR INDIVIDUALS SUBJECT TO FEDERAL HOURS OF SERVICE. (a) In General.—Section 274(n) (relating to only 50 percent of meal and entertainment expenses allowed as deduction) is amended by adding at the end the following new paragraph: “(3) Special rule for individuals subject to federal hours of service.— “(A) In general.—In the case of any expenses for food or beverages consumed while away from home (within the meaning of section 162(a)(2)) by an individual during, or incident to, the period of duty subject to the hours of service limitations of the Department of Transportation, paragraph (1) shall be applied by substituting ‘the applicable percentage’ for ‘50 percent’.111 STAT. 897 “(B) Applicable percentage.—For purposes of this paragraph, the term ‘applicable percentage’ means the percentage determined under the following table: “For taxable years beginning in calendar year— The applicable percentage is— 1998 or 1999 55 2000 or 2001 60 2002 or 2003 65 2004 or 2005 70 2006 or 2007 75 2008 or thereafter 80.”. (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1997.