The travel industry has been severely impacted by the global spread of COVID-19 pandemic, which has to forced international borders to close down with no social distancing restrictions in place. As numerous countries across the Caribbean and Europe begin to reopen, some remain worried that tourism may not bounce back quickly to atone for the virus-influenced massive job loss and spike in unemployment. In order to keep the industry from collapsing, some Republican lawmakers are proposing a new tax credit to entice more Americans to vacation.
Republican Sen. Martha McSally (AZ) recently revealed her new proposal called the American Tax Rebate and Incentive Program Act, or the American TRIP Act. The bill would grant up to a $4,000 tax credit for travel-related expenses through the end of 2022. The credit would increase to $8,000 for couples in addition to $500 per child for all travel within the United States. Expenses that can be written off include food, drinks, accommodations, live entertainment events, and transportation. According to WUSA9, destination marketing organizations would also receive $50 million in relief to help promote travel and tourism.
“The tourism and hospitality industries were among the hardest hit sectors across the country and their revival is critical to our economic recovery,” said McSally in a press statement, according to Business Insider.
“My legislation will help boost domestic travel and jump-start 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 continued. “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.”
