Page:United States Statutes at Large Volume 94 Part 1.djvu/275

 PUBLIC LAW 96-222—APR. 1, 1980

94 STAT. 225

(E) AMENDMENT OF SECTION 3(b).—Paragraph (1) of section 26 USC 3. 3(b) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (F) QUALIFIED HOME LEAVE TRAVEL EXPENSES.—

(i) Subsection (g) of section 913 (relating to qualified 26 USC 913. home leave travel expenses) is amended to read as follows: "(g) QuAUFiED HOME LEAVE TRAVEL EXPENSES.—

"(1) IN GENERAL.—For purposes of this section, the term 'qualified home leave travel expenses' means the reasonable amounts paid or incurred by or on behalf of an individual for the transportation of such individual, his spouse, and each dependent— "(A) from a point of outside the United States to the individual's principal domestic residence, and "(B) from the individual's principal domestic residence to a point outside the United States. "(2) LIMITATION TO COST BETWEEN TAX HOME AND PLACE OF

RESIDENCE.—The amount taken into account under subparagraph (A) or (B) of paragraph (1) with respect to any transportation shall not exceed the reasonable amount for transportation between the location of the individual's tax home outside the United States and the individual's principal domestic residence. "(3) SUBSTITUTION OF NEAREST PORT OF ENTRY IN CERTAIN

CASES.—With respect to any person whose travel in the United States is not travel to and from the individual's principal domestic residence, paragraphs (1) and (2) shall be applied by substituting the nearest port of entry in the United States for the individual's principal domestic residence. "(4) NEAREST PORT OF ENTRY.—For purposes of paragraph (3),

the nearest port of entry in the United States shall not include a nearest port of entry located in Alaska or Hawaii unless the individual elects to have such port of entry taken into account. "(5) PRINCIPAL DOMESTIC RESIDENCE DEFINED.—For purposes of this subsection, an individual's principal domestic residence is the location of such individual's present (or, if none, most recent) principal residence in the United States. "(6) 1 ROUND TRIP PER 12-MONTH PERIOD ABROAD.—Amounts

may be taken into account under paragraph (4) of subsection (b) only with respect to 1 trip to the United States, and 1 trip from the United States, per person for each continuous period of 12 months for which the individual's tax home is in a foreign country." (ii) Clause (ii) of section 913(i)G)(C) (relating to qualified second household) is amended by striking out, and paragraph (1) of subsection (g)," and inserting in lieu thereof, and subsection (g),". (G) AMENDMENT OF SECTION II9.—Subsection (a) of section 26 USC 119. 119 (as in effect on the day before the date of the enactment of the Foreign Earned Income Act of 1978) is amended by 26 USC i note, striking out (a) GENERAL RULE.—". (2) EFFECTIVE DATES.—

(A) IN GENERAL.—Except as provided in subparagraph (B), the amendments made by paragraph (1) shall take effect as if included in the Foreign Earned Income Act of 1978. (B) PARAGRAPH (I)(E).—The amendment made by paragraph (1)(E) shall apply to taxable years beginning aiter December 31, 1978.

26 USC 3 note.

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