GOP senator proposes $4,000 vacation tax credit to 'restart' tourism industry

Arizona Republican Sen. Martha McSally has proposed a vacation tax credit for individuals and families to "restart" the tourism industry that has struggled during the COVID-19 pandemic.

The travel credit in the American TRIP Act, which applies to travel within the United States and its territories, would be $4,000 for individual tax filers and $8,000 for joint filers. The travel credit can be used toward food, lodging, travel, entertainment and conference or business meeting expenses through January 2022.      

The bill requires the vacation destination to be greater than 50 miles from a taxpayer's primary residence.

"Arizona has lost billions in revenue this year alone due to the pandemic. My legislation will help boost domestic travel and jumpstart the comeback 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," McSally said in a statement about the bill on Monday. "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.”

The legislation also includes $50 million in federal grants issued to Destination Marketing Organizations (DMOs) to assist with "marketing and promoting communities and facilities to businesses and leisure travelers."