Airlines, hotels, restaurants and other sectors of the travel and tourism industry have taken a hard hit in the past few months and although there are some signs of recovery, none of them are anywhere near 2019 levels. To help the travel industry recover, the industry lobbyist U.S. Travel Association proposed a tax credit that Americans could potentially use towards their next vacation.
As per Bambridge Accountants, the incentive would be a tax credit of up to 50% for some of the things a household would spend on vacation expenses such as airfares, car rentals, hotels, theme parks, restaurants, etc.
During a round table discussion with restaurant industry leaders last month, the president indicated that he liked the plan, which is now a proposal to Congress.
“Create an ‘Explore America’ — that’s ‘Explore,’ right? Explore America tax credit that Americans can use for domestic travel, including visits to restaurants. That’s a big deal.” the president said in opening remarks to the restaurateurs.
The U.S. Travel Association said in a news release that “an ‘Explore America’ tax credit and campaign will do wonders to put America back on the path to prosperity. We applaud the president’s support.”
The Independent Restaurant Coalition apparently agrees, announcing, “We are grateful that President Trump and Congress are taking the concerns of our industry seriously and look forward to working together to ensure our businesses can survive this crisis and our employees can get back to work.”
Americans have said that, in light of the coronavirus pandemic, they have much more interest in traveling domestically at this time. With that in mind, a $4000 tax credit could potentially incentivize those who were on the fence about traveling at all.
As of this writing, the tax credit still needs to be reviewed by Congress before being considered to be made into a bill. If approved, the tax credit wouldn’t go into effect until the end of 2021.
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This post first appeared on Your Mileage May Vary