Washington, DC -- Congressman Neil Abercrombie today re-introduced legislation to restore the business meal and entertainment (M&E) tax deduction to 100%. 

The bill, entitled The Business Travel Incentives Act of 2005, is similar to bills introduced by Abercrombie in previous sessions of Congress.

Current law allows a 50% deduction for M&E business expenses.  Abercrombie expects that doubling the deduction will stimulate sales and job growth in the restaurant and hospitality industries.

The change is supported by the Business Travel Roundtable, the Travel Industry Association and the National Restaurant Association.

According to the National Restaurant Association, the nation’s restaurants and cafeterias employ an estimated 12.2 million workers, making it the country’s largest private employment sector.  The Association estimates that they generate $467 billion in annual sales.

In Abercrombie’s home state of Hawaii, restaurants employ about 50,000 workers.

Abercrombie said, "The issue here is strengthening our economy.  It’s about jobs and business survival.  The people who will benefit most are the food service workers and others whose jobs directly or indirectly depend on the restaurant and hospitality industries."

-30-