Section 1 Short title
This Act may be cited as the “Service Worker Economic Stabilization Act”.
Service Worker Economic Stabilization Act
A BILL
To amend the Internal Revenue Code of 1986 to provide for a temporary allowance for entertainment business expenses, and for other purposes.
Sec. 2 Temporary allowance for entertainment business expenses and similar business expenses
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).”
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
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”.
Effective date— The amendments made by this section shall apply to amounts paid or incurred after December 31, 2022.