$4,000 Vacation Tax Credit Could Be Included in Next Stimulus Package

Ever since the IRS sent out the first stimulus checks amid the coronavirus pandemic, Americans have been wondering whether or not another round of financial support would come, with many stimulus proposals popping up over the past few months. With cases continuing to rise across the country and the economy taking a hit in many areas, including travel, there's potential that the next stimulus could provide a boost for those looking to take a vacation this year.

First brought up by President Donald Trump during a discussion he had with restaurant executives and others in the industry, a tax deduction for Americans who travel in 2020, whether it be on a vacation or a restaurant, could be possible as part of the 'Explore America' proposal. The tax relief proposed would be up to $4,000 for households, providing an incentive for people to put their money into the travel industry. Included in the proposal are airfare, hotels, theme parks, car rentals and restaurants. The U.S. Travel Association placed their support in the matter, saying in a statement by CEO Roger Dow that this proposal would "do wonders to put America back on the path of prosperity." Dow added that they are "grateful" for Trump listening to their pleas for help provide a boost for the industry.

Lobbyists are still putting together the final touches on the proposal in Congress, but that the overall meaning behind it would simply be to give consumers the extra push to place their money confidently in resuming travel. According to Forbes, the industry was among the hardest hit as a result of the coronavirus outbreak, accounting for nearly 40 percent of lost jobs in April. Before COVID-19, the industry was responsible for $2.6 trillion in the economy. Kevin Hassett, who is a White House economic advisor, told the Wall Street Journal that another set of stimulus help is "very, very high," adding more fuel to the 'Explore America' proposal.

One aspect covered in this tax credit would be theme parks, which means those looking to head to places like Walt Disney World, Disneyland or Universal Studios would potentially be in line for financial help later on. Universal (along with SeaWorld) has already opened up their gates, while Disney World is set for a July 11 phased reopening that will see two parks open on the first day followed by the last two on July 15. Meanwhile, Disneyland is scheduled to unlock its doors shortly after.