Sen. Martha McSally (R-Arizona) has introduced legislation that would enable Americans to deduct domestic travel expenses on their tax returns for the next three years.
The American TRIP Act would provide up to a $4,000 travel credit for individuals and $8,000 for joint filers, plus an additional $500 credit for dependent children. Eligible expenses are money spent in the U.S. on lodging, transportation and live entertainment events in 2020, 2021 and 2022. The spending must occur at least 50 miles from the taxpayer's home.
Also, the bill would provide $50 million in funding for destination marketing organizations to promote the travel and tourism industry.
McSally noted that travel and hospitality has one of the nation's highest unemployment rates because of the Covid-19 pandemic.
"Arizona has lost billions in revenue this year alone due to the pandemic," McSally said. "My legislation will help boost domestic travel and jump-start the comeback of our hotels, entertainment sectors and local tourism agencies. I look forward to working with both sides of the aisle in the Senate and House to restart an important part of the economy by passing this bill."