Proposed Vacation Tax Credit Hailed by US Travel Association

The US Travel Association is vocalizing their support for the proposed vacation tax credit. The $4,000 travel tax credit, dubbed by President Donald Trump as the "Explore America" tax credit, is being tossed around as a possible measure in the next stimulus package amid the coronavirus pandemic and is meant to give a boost to the hospitality industry, which has suffered amid the pandemic. Many lawmakers have already expressed their desire to see the credit put into place, with Roger Dow, U.S. Travel Association President and CEO, stating that it would "do wonders" to revive the industry.

In a statement initially shared in mid-May following the president's remarks on the proposed credit, Dow said that the association is "grateful to the president for hearing our call for a national effort to get Americans traveling again as the country shifts into the recovery phase." Throughout the pandemic, the travel industry has lost 8.1 million jobs and counting and projected to lose $519 billion in spending. Although all 50 states have lifted lockdowns, many Americans still seem hesitant to travel, whether it be due to fears of the coronavirus or because of unemployment.

Dow went on the remark that "travel supported jobs for one in every 10 Americans before the pandemic." He expressed that "measures to incent travel will not only give people a renewed appreciation for this great country in which we live, but they are an efficient and effective way to ignite a recovery and restore jobs in every corner of the nation."

"An 'Explore America' tax credit and campaign will do wonders to put America back on the path to prosperity," Dow added. "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."

The president first proposed a vacation credit in May during a White House roundtable with restaurant industry leaders. At the time, the president did not give an exact dollar amount, though numerous sources have purported that it could be $4,000. The credit could be used on domestic travel expenses, such as hotels, restaurants, and theme parks, through the year 2021. The credit, however, depends on if another stimulus package passes. Reports have suggested that another stimulus package could be passed in July, which is when congressional leaders intend to start work on a proposed second financial package.