Page:United States Statutes at Large Volume 100 Part 3.djvu/311

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2119

"(m) ADDITIONAL LIMITATIONS ON TRAVEL EXPENSES.— "(1) LUXURY WATER TRANSPORTATION.—

"(A) IN GENERAL.—No deduction shall be allowed under this chapter for expenses incurred for transportation by water to the extent such expenses exceed twice the aggregate per diem amounts for days of such transportation. For purposes of the preceding sentence, the term 'per diem amounts' means the highest amount generally allowable with respect to a day to employees of the executive branch of the Federal Government for per diem while away from '" ' home but serving in the United States. "(B) EXCEPTIONS.—Subparagraph (A) shall not apply to— "(i) any expense allocable to a convention, seminar, or other meeting which is held on any cruise ship, and I.. "(ii) any expense to which subsection (a) does not ' apply by reason of paragraph (2), (3), (4), (7), (8), or (9) of subsection (e). "(2) TRAVEL AS FORM OF EDUCATION.—No deduction shall be allowed under this chapter for expenses for travel as a form of education, "(n) ONLY 80 PERCENT OF MEAL AND ENTERTAINMENT EXPENSES ALLOWED AS DEDUCTION.—

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"(1) IN GENERAL.—The amount allowable as a deduction under this chapter for— "(A) any expense for food or beverages, and "(B) any item with respect to an activity which is of a type generally considered to constitute entertainment, a amusement, or recreation, or with respect to a facility used in connection with such activity, shall not exceed 80 percent of the amount of such expense or item which would (but for this paragraph) be allowable as a deduction under this chapter. "(2) EXCEPTIONS.—Paragraph (1) shall not apply to any expense if— "(A) subsection (a) does not apply to such expense by reason of paragraph (2), (3), (4), (7), (8), or (9) of subsection " (e), "(B) in the case of an expense for food or beverages, 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), "(C) such expense is covered by a package involving a ticket described in subsection (1)(1)(B), or "(D) in the case of an expense for food or beverages before January 1, 1989, such expense is an integral part of a qualified meeting. "(3) QUALIFIED MEETING.—For purposes of paragraph (2)(D), the term 'qualified meeting' means any convention, seminar, annual meeting, or similar business program with respect to which— "(A) an expense for food or beverages is not separately stated, "(B) more than 50 percent of the participants are away from home, "(C) at least 40 individuals attend, and

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