A United States Senator has proposed a new bill that would award Americans with a $4,000 tax credit for use toward a vacation.
According to AZCentral.com, Arizona Senator Martha McSally introduced the American TRIP Act on June 22, which calls for American citizens to receive up to $4,000 in tax credit for travel within the U.S. and its territories after December 31, 2019, and before January 1, 2022.
In the proposal, the vacation credit would increase to $8,000 for citizens who file jointly and dependent children would add another $500 each. The tax break would be retroactive to January 1.
To be eligible for the tax credit, Americans must travel at least 50 miles away from their home.
“The tourism and hospitality industries were among the hardest-hit sectors across the country and their revival is critical to our economic recovery,” Sen. McSally told AZCentral. “Arizona has lost billions in revenue this year alone due to the pandemic.”
“My 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,” McSally continued.
As part of the legislation, eligible expenses would include lodging, transportation costs and entertainment, and people who own a vacation home would still be allowed to write off all expenses, sans the mortgage.
In addition to the tax credits for travelers, the American TRIP Act would include a $50 million budget to help destination marketing organizations promote tourism as the country reopens amidst the ongoing coronavirus outbreak.
Earlier in June, the “Explore America” Tax Credit proposal circulated around Congress and the White House that would’ve Americans up to $4,000 in tax breaks for vacation expenses at hotels, theme parks and other tourism businesses through the end of 2021.
Source: Read Full Article