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able year in which any after-received compensa

tion is received an amount equal to any excess

housing deduction determined for such year.

"(B) EXCESS HOUSING DEDUCTION.-For purposes of subparagraph (A), the excess housing deduction determined for any taxable year is the excess (if any) of—

"(i) the aggregate amount which has been allowed as a housing deduction (for such taxable year and all prior taxable

years), over

"(ii) the aggregate amount which would have been allowable as a housing deduction

(for such taxable year and all prior taxable

years for which a housing deduction has been allowed), by taking after-received compensa

tion into account under this subsection as if it had been received in the taxable year in which the services were performed.

In applying the preceding sentence to any taxable

year, proper adjustment shall be made for the effect of applying such sentence for purposes of all prior taxable years.

"(C) TREATMENT OF AMOUNT INCLUDED IN INCOME. Any amount included in gross income

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under subparagraph (A) shall not be treated as

income for purposes of applying subsection (c) of

TION. The term 'after-received compensation' means compensation received by an in

dividual in a taxable year which is attributable to services performed by such individual in the third preceding, second preceding, or first preceding taxable year."

(C) CLERICAL AMENDMENT.-Paragraph (2)

of section 911(a) (relating to income earned by individuals in certain camps) is amended by striking out "qualified foreign" and inserting in lieu thereof "a foreign country or".

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(D) AMENDMENT OF LAST SENTENCE OF SECTION 911(a).-The last sentence of section

911(a) (relating to income earned by individuals in

certain camps) is amended

(i) by inserting "any deduction," after "his gross income", and

(ii) by striking out "deductions allowed by sections 217" and inserting in lieu thereof "deduction allowed by section 217".

(E) AMENDMENT OF SECTION 3(b).-Paragraph (1) of section 3(b) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.

(F) QUALIFIED HOME LEAVE TRAVEL EX

PENSES.

(i) Subsection (g) of section 913 (relating to qualified home leave travel expenses) is amended to read as follows:

"(g) QUALIFIED 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

55-169 - 80-6

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"(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.

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"(5) PRINCIPAL DOMESTIC

RESIDENCE DE

FINED. For purposes of this subsection, an individual's principal domestic residence is the location of such individual's present (or, if none, most recent) prin

cipal 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 for

eign country."

(ii) Clause (ii) of section 913(i)(1)(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 119.-Subsection (a) of section 119 (as in effect on the day before the date of the enactment of the Foreign

Earned Income Act of 1978) is amended by strik

ing out "(a) GENERAL RULE.-".

(2) Effective dates.

(A) IN GENERAL.-Except as provided in subparagraph (B), the amendments made by para