A proposed travel tax credit would do wonders for the industry—
but it’s far from a reality yet.
The idea of a travel tax credit holds great promise for the travel and events industry, but right now it is just that—an idea.
In May, President Donald Trump floated the idea at a White House roundtable with restaurant executives and industry leaders, and dubbed it “Explore America”—a $4,000 tax credit that Americans can use for up to half of a household’s vacation expenses, including transportation, hotel reservations and dining out. All expenses over $50 would qualify.
The proposal was hailed by industry leaders, including the U.S. Travel Association.
“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, and with our industry’s health and safety guidance for the reopening of travel businesses in place, we are very prepared to work with the administration to push the effort forward at the right time,” Travel Association CEO Roger Dow said in a statement after Trump’s remarks.
The credit would encourage recipients to spend money to boost the economy and has the potential to create more jobs in a sector of the economy that has been hard hit. On the down side, unlike the previous stimulus, this would be a tax credit, not direct money, and there is still uncertainty around the safety of travel and a possible second wave.
Congress hasn’t set a date for a vote on the next stimulus package, but Senate Majority Leader Mitch McConnell said the Senate may wait until the end of July to start work on the bill. For now, it’s Stay Tuned.
You Might Also Be Interested In
