A new bill would give a tax credit of $4,000, plus more money for each child, for travel within the United States.
Sen. Martha McSally (R-Ariz.), who introduced the bill, cited the effects of the COVID-19 pandemic.
“The tourism and hospitality industries were among the hardest hit sectors across the country and their revival is critical to our economic recovery,” she said in a statement.
The legislation “will help boost domestic travel and jumpstart the comeback of our hotels, entertainment sectors, local tourism agencies, and the thousands of businesses that make Arizona one of the best places in the world to visit,” she added.
“It will also encourage Americans to safely get out of their homes and discover or rediscover Arizona along with the rest of the amazing destinations our country has to offer after a difficult several months stuck inside.”
The bill (pdf), dubbed the American TRIP Act, would alter the Internal Revenue Code to establish a temporary, nonrefundable personal tax credit for travel, hospitality, and entertainment expenses if they are incurred domestically.
Only expenses that are paid during travel for which the final destination is 50 miles or more from the taxpayers principal residence would qualify.
Each person would be eligible for a $4,000 credit; couples filing joint tax returns could get up to $8,000.
Parents would receive additional credits for each child.
The bill authorizes the appropriation of $50 billion for fiscal year 2021 to disperse as tax credits. The money would remain available until expended. It would also provide $50 million to help official travel agencies known as Destination Marketing Organizations to promote travel and tourism across the nation.
Republican President Donald Trump, who was set to visit McSallys state on Tuesday, last month mentioned creating a tax credit he referred to as “Explore America” that would apply for people traveling domestically.
The U.S. Travel Association has also pushed for including a temporary travel tax credit in one of the packages aimed at relief from the economic downturn caused by harsh measures imposed to try to curb the spread of the CCP (Chinese Communist Party) virus.
The association proposed a credit worth 50 percent of qualified travel expenses incurred in the United States, up to a maximum tax credit of $4,000 per household.
Qualified travel expenses should include any expense over $50 that is incurred while traveling away from home in the United States, with explicit reference to the expense of meals, lodging, recreation, transportation, amusement or entertainment, business meetings or events, and gRead More From Source