American TRIP Act

II 116TH CONGRESS 2D SESSION S. 4031 To amend the Internal Revenue Code of 1986 to establish a temporary nonrefundable personal tax credit for travel, hospitality, and entertain- ment expenses, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 22, 2020 Ms. MCSALLY introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to establish a temporary nonrefundable personal tax credit for travel, hospitality, and entertainment expenses, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘American Tax Rebate 4 and Incentive Program Act’’ or the ‘‘American TRIP 5 Act’’. 6 VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4031 IS SEC. 2. TEMPORARY NONREFUNDABLE PERSONAL CREDIT 1 FOR TRAVEL, HOSPITALITY, AND ENTERTAIN- 2 MENT EXPENSES. 3 (a) IN GENERAL.—Subpart A of part IV of sub- 4 chapter A of chapter 1 of the Internal Revenue Code of 5 1986 is amended by inserting after section 25D the fol- 6 lowing new section: 7 ‘‘SEC. 25E. TRAVEL, HOSPITALITY, AND ENTERTAINMENT 8 EXPENSES. 9 ‘‘(a) IN GENERAL.—In the case of an individual, 10 there shall be allowed as a credit against the tax imposed 11 by this chapter for the taxable year an amount equal to 12 the lesser of— 13 ‘‘(1) any eligible expenses paid or incurred by 14 the taxpayer during such taxable year, or 15 ‘‘(2) an amount equal to— 16 ‘‘(A) $4,000 ($8,000 in the case of a joint 17 return), plus 18 ‘‘(B) an amount equal to the product of 19 $500 multiplied by the number of qualifying 20 children (within the meaning of section 24(c)) 21 of the taxpayer. 22 ‘‘(b) ELIGIBLE EXPENSES.— 23 ‘‘(1) IN GENERAL.—For purposes of this sec- 24 tion, the term ‘eligible expenses’ means any expenses 25 which are paid or incurred by the taxpayer during 26 VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4031 IS any period of qualifying travel which are related to 1 any of the following: 2 ‘‘(A) Food and beverages. 3 ‘‘(B) Lodging. 4 ‘‘(C) Transportation. 5 ‘‘(D) Live entertainment events (including 6 sporting events). 7 ‘‘(E) Expenses related to attending a con- 8 ference or business meeting. 9 ‘‘(2) QUALIFYING TRAVEL.— 10 ‘‘(A) IN GENERAL.—For purposes of this 11 section, the term ‘qualifying travel’ means any 12 travel— 13 ‘‘(i) which occurs within the United 14 States (including any territory or posses- 15 sion of the United States), 16 ‘‘(ii) for which the final destination is 17 not less than 50 miles from the principal 18 residence of the taxpayer (within the 19 meaning of section 121), and 20 ‘‘(iii) which occurs after December 31, 21 2019, and before January 1, 2022. 22 ‘‘(B) VACATION HOME.—For purposes of 23 subparagraph (A)(ii), the final destination may 24 include any other residence owned by the tax- 25 VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4031 IS payer which is not the principal residence of the 1 taxpayer, except that any expenses paid or in- 2 curred by the taxpayer for lodging (as described 3 in paragraph (1)(B)) with respect to such resi- 4 dence shall not be included as eligible expenses 5 under this section. 6 ‘‘(C) USE OF PERSONAL VEHICLE.—With 7 respect to a motor vehicle used for qualifying 8 travel which is owned or leased by the taxpayer, 9 the amount of any vacation expenses described 10 in paragraph (1)(C) with respect to the use of 11 such motor vehicle shall be determined using 12 the standard mileage rate in effect under sec- 13 tion 162(a) at the time of such use. 14 ‘‘(c) EXCLUSION OF BUSINESS TRAVEL EX- 15 PENSES.—No credit shall be allowed under subsection (a) 16 with respect to any expenses with respect to which a de- 17 duction is allowed or allowable to the taxpayer under sec- 18 tion 162(a)(2). 19 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 20 such regulations or other guidance as may be necessary 21 to carry out the purposes of this section, including rules 22 for itemization of any eligible expenses claimed by the tax- 23 payer (in such form and manner as is deemed appropriate 24 VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4031 IS by the Secretary) for purposes of the credit allowed under 1 this section.’’. 2 (b) CLERICAL AMENDMENT.—The table of sections 3 for subpart A of part IV of subchapter A of chapter 1 4 of the Internal Revenue Code of 1986 is amended by in- 5 serting after the item relating to section 25D the following 6 new item: 7 ‘‘Sec. 25E. Travel, hospitality, and entertainment expenses.’’. SEC. 3. DESTINATION MARKETING ORGANIZATION GRANT 8 PROGRAM. 9 (a) IN GENERAL.—The Secretary shall establish a 10 program to provide grants to each State to support des- 11 tination marketing organizations. 12 (b) AMOUNT.—The amount of the grant that shall 13 be provided to each State shall be— 14 (1) determined in such manner as is deemed 15 appropriate by the Secretary, and 16 (2) disbursed by the Secretary to such State 17 not later than 30 days after the date of enactment 18 of this Act. 19 (c) USE OF FUNDS.—Any funds provided to a State 20 under this section shall be transferred by such State to 21 any destination marketing organizations located within 22 such State, in such manner as is determined appropriate 23 by such State. 24 (d) DEFINITIONS.— 25 VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4031 IS (1) DESTINATION MARKETING ORGANIZA- 1 TION.—The term ‘‘destination marketing organiza- 2 tion’’ means a nonprofit entity, a State, or a polit- 3 ical subdivision of a State (including any instrumen- 4 tality of such entities) engaged in marketing and 5 promoting communities and facilities to businesses 6 and leisure travelers through a range of activities, 7 including— 8 (A) assisting with the location of meeting 9 and convention sites; 10 (B) providing travel information on area 11 attractions, lodging accommodations, and res- 12 taurants; 13 (C) providing maps; and 14 (D) organizing group tours of local histor- 15 ical, recreational, and cultural attractions. 16 (2) SECRETARY.—The term ‘‘Secretary’’ means 17 the Secretary of Commerce. 18 (3) STATE.—The term ‘‘State’’ means any of 19 the 50 States, the District of Columbia, the Com- 20 monwealth of Puerto Rico, the Virgin Islands, 21 Guam, American Samoa, and the Commonwealth of 22 the Northern Mariana Islands. 23 (e) GUIDANCE.—Not later than 30 days after the 24 date of enactment of this Act, the Secretary shall prescribe 25 VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 4031 IS such rules and guidance as may be necessary to carry out 1 the purposes of this section, including any measures as 2 are deemed appropriate for purposes of ensuring appro- 3 priate transfer of funds by States under subsection (c). 4 (f) AUTHORIZATION OF APPROPRIATIONS.—To carry 5 out the purposes of this section, there is authorized to be 6 appropriated $50,000,000 for fiscal year 2021, to remain 7 available until expended. 8 Æ VerDate Sep 11 2014 22:25 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\S4031.IS S4031 pbinns on DSKJLVW7X2PROD with BILLS