Senator Martha McSally has introduced a new bill that would give Americans a strong financial incentive to take a vacation and revive the tourism industry that has been hit hard by the coronavirus pandemic.
The Arizona Republican on Monday introduced the American TRIP Act that would grant every American a $ 4,000 tax credit to take a trip. The vacation credit, retroactive to January 1, would increase to $ 8,000 for joint taxpayers plus an additional $ 500 for dependent children.
“The tourism and hospitality industries were among the most affected sectors across the country and their revival is critical to our economic recovery,” McSally said in a statement. “Arizona has lost billions in revenue this year alone due to the pandemic. My legislation will help drive national travel and drive the return 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. “
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Americans would be eligible for the tax credit as long as they travel within the United States and its territories after December 31, 2019 and before January 1, 2022, according to the bill.
Travelers would only have to vacation at least 50 miles from their home. Expenses eligible for the tax credit would include lodging, transportation and entertainment costs.
Americans who already own a vacation home could also get some of the benefit. The tax credit may apply to transportation and entertainment in your second home, but not to the mortgage.
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A tax credit directly reduces the amount of money Americans owe to the IRS. So under the law, if an individual taxpayer owes $ 15,000, for example, to the federal government in taxes next year and the person spent $ 4,000 on a qualifying trip, then the tax bill drops to $ 11,000.
The McSally bill would also award $ 50 million to help destination marketing organizations promote travel and tourism across the country.
McSally, who is set for election this fall, is in a tight race against Democratic candidate Mark Kelly, a former astronaut.