There's a New $4,000 Tax Credit in the Works -- With a Catch
Though the U.S. economy has been hurting due to COVID-19, the travel industry has been downright hammered. But a new proposal could serve the dual purpose of breathing new life into the tourism industry while also putting money back in Americans' pockets. It's called the Explore America Tax Credit, and its purpose is to encourage domestic tourism while rewarding Americans financially for getting out and traveling within the United States.
A tax credit is a dollar-for-dollar reduction of a person's tax liability. A $1,000 tax credit, in other words, means that person pays the IRS $1,000 less.
The proposed Explore America Tax Credit would allow Americans to claim up to 50% of their domestic travel expenses as a tax credit on an upcoming tax return, up to a total credit value of $4,000. Those costs could include things like air or train fare, lodging, recreation, meals, and entertainment. Furthermore, the Explore America Tax Credit, in its current form, would run through the end of 2021.
Source Fool.com
