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TITLE 26-INTERNAL REVENUE CODE Pub. L. 91-172, § 902(a), redesignated former subsec. (f) as (h). 1962-Subsec. (a)(2). Pub. L. 87-834, § 4(b), substitut- ed "(including amounts expended for meals and lodg- ing other than amounts which are lavish or extrava- gant under the circumstances)" for "including the entire amount expended for meals and lodging)". Subsec. (e). Pub. L. 87-834, § 3(a), added subsec. (e), and redesignated former subsec. (e) as (f). Subsec. (f). Pub. L. 87-834, § 3(a), redesignated former subsec. (e) as (f). 1960-Subsec. (b). Pub. L. 86-779, § 7(b), nserted "the dollar limitations," following "the prcentage limitations,". Subsec. (d). Pub. L. 86-779, § 8(a), added subsec. (d). Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 86-779, §t .ka), redesignated former subsec. (d) as (e). 1958-Subsee. (c). Pub. L. 85-866, § 5(a), added subsec. (c) and redesignated former subsec. (c) and (d). Subsec. d). Pub. L. 85-866, § 5(a), redesignated former subsec. (c) as (d). EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (a) by section 1901(c)(4) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Section 310(b) of Pub. L. 92-178 provided that: "The amendments made by subsection (a) (to subsec. (c) heading and subsec. (c)(2) and (3) of this section] shall apply with respect to payments after December 30, 1969, except that section 162(c)(3) of the Internal Rev- enue Act of 1954 (as added by subsection (a)) (subsec. (c)(3) of this section] shall apply only with respect to kickbacks, rebates, and bribes payment of which is made on or after the date of the enactment of this Act [Dec. 10, 1971]." EFFECTIVE DATE OF 1969 AMENDMENT Section 902(c) of Pub. L. 91-172 provided that: "Sec- tion 162(f) of the Internal Revenue Code of 1954 [subsec. (f) of this section] (as added by subsection (a)) shall apply to all taxable years to which such Code [this title] applies. Section 162(g) of such Code (subsec. (g) of this section] (as added by subsection (a)) shall apply with respect to amounts paid or in- curred after December 31, 1969. Section 162(c)(1) of such Code (subsec. (c)(1) of this section] (as amended by subsection (b)) shall apply to all taxable years to which such Code applies. Sections 162(c)(2) and (3) of such Code [subsec. (c)(2) and (3) of this section] (as amended by subsection (b)) shall apply with respect to payments made after the date of the enactment of this Act [Dec. 30, 1969]." Amendment by section 516(c)(2)(A) of Pub. L. 91-172 applicable to transfers after Dec. 31, 1969, see section 516(d)(3) of Pub. L. 91-172, set out, as an Effective Date of 1969 Anendment note under section 1001 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Section 4(c) of Pub. L. 87-834 provided that: "The amendments made by this section [amending subsec. (a) of this section and adding section 274 of this title] shall apply with respect to taxable years ending after December 31, 1962, but only in respect of periods after such date." Section 3(b) of Pub. L. 87-834 provided that: "The amendments made by this section [adding subsec. (e) and redesignating former subsec. (e) as (f)] shall apply to taxable years beginning aftir December 31, 1962." EFFECTIVE DATE OF 1960 AMENDMENT Section 7(c) of Pub. L. 86-779 provided that: "The amendments made by subsections (a) and (b) [to sec- tion 170 of this title and subsec. (b) of this section] shall apply with respect to taxable years beginning after December 31, 1959." Section 8(d) of Pub. L. 86-779 provided that: "The amendments made by subsections Ca), (b), and (c) [adding subsec. (d) of this section and section 1054 of this title and amending table of sections for Part IV by adding item 1054 and numbering former item 1054 as 1055] shall apply with respect to taxable years be- ginning after December 31, 1959." EFFECTIVE DATE OF 1958 AMENDMENT Section 5(b) of Pub. L. 85-866 provided that: "The amendment made by subsection Ca) (to subsecs. (c) and (d) of this section] shall apply only with respect to expenses paid or incurred after the date of the en- actment of this Act [Sept. 2, 1958]. The determination as to whether any expense paid or incurred on or before the date of the enactment of this Act [Sept. 2, 1958] shall be allowed as a deduction shall be made as if this section had not been enacted and without infer- ence drawn from the fact that this section is not made applicable with respect to expenses paid or incurred on or before the date of the enactment of this Act (Sept. 2, 1958]." STATE LEGISLATORS' TRAVEL EXPENSES AWAY FROM HOME Section 604 of Pub. L. 94-455 provided that: "(a) In general.-For purposes of section 162(a) of the Internal Revenue Code of 1954 [subsec. (a) of this section], in the case of any individual who was a State legislator at any time during any taxable year begin- ning before January 1, 1976, and who elects the appli- cation of this section, for any period during such a taxable year in which he was a State legislator- "(1) the place of residence of such individual within the legislative district which he represented shall be considered his home, and "(2) he shall be deemed to have expended for living expenses (in connection with his trade or busi- ness as a legislator) an amount equal to the sum of the amounts determined by multiplying each legisla- tive day of such individual during the taxable year by the amount generally allowable with respect to such 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) Legislative days.-For purposes of subsection (a), a legislative day during any taxable year for any individual shall be any day during such year on which (1) the legislature was in session (including any day in which the legislature was not in session for a period of 4 consecutive days or less), or (2) the legislature was not in session but the physical presence of the individ- ual was formally recorded at a meeting of a committee of such legislature. "(c) Limitation.-The amount taken into account as living expenses attributable to a trade or business as a State legislator for any taxable year under an election made under this section shall not exceed the amount claimed for such purpose under a return (or amended return) filed before May 21, 1976. "(d) Making and effect of election.-An election under this section shall be made at such time and in such manner as the Secretary of the Treasury or his delegate shall by regulations prescribe. Any such elec- tion shall apply to all taxable years beginning before January 1, 1976, for which the period for assessing or collecting a deficiency has not expired before the date of the enactment of this Act (Oct. 4, 1976]." DENIAL OF DEDUCTION FOR AMOUNTS PAID OR INCURRED ON JUDGMENTS IN SUITS BROUGHT TO RECOVER PRICE INCREASES IN PURCHASE OF NEW PRINCIPAL RESIDENCE No deductions to be allowed in computing taxable income for two-thirds of any amount paid or incurred on a judgment entered against any person in a suit brought under section 208(b) of Pub. L. 94-12, see sec- tion 208(c) of Pub. L. 94-12, title II, Mar. 29, 1975, 89 Stat. 35, set out as a note under section 44 of this title. Page 141 § 162