Congress May Offer Tax Credits For Travel

by Mike Godfrey, Tax-News.com, Washington

12 October 2001

In a bid to encourage frightened US citizens to travel again following the plane hijackings and subsequent terrorist attacks of September 11th, a bipartisan group in Congress has proposed a bill that would offer US travelers tax credits to cover expenses, and help shore up the country's ailing $582 billion travel and tourism industry.

The Travel America Now Act would give a $500 tax credit to individuals and $1,000 to couples towards vacation and business expenses, and could cover airfare, bus and train tickets, hotel and entertainment expenses, gasoline, and travel related fees and taxes. It would also raise to 100% the allowable tax deduction for business meals and entertainment, and would increase the 'carry back' period for travel-related businesses from two to five years.

The bill's main sponsor, Republican John Kyl explained the necessity of measures such as these in an interview with CNN: 'The events of September 11 have devastated the travel industry more than any other segment of the economy, and the situation will worsen until Americans resume travel,' he said last week. 'As one of the country's largest employers, the travel and tourism industry's health closely connects to the state of the overall national economy.'

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