White House considering coronavirus tourism tax break to encourage vacations

WASHINGTON —A proposal to boost tourism by providing tax breaks for Americans who travel inside the United States is being “actively” considered by the White House for inclusion in the next coronavirus stimulus package.

Three White House officials said the tax credit for travel, which has been sharply curtailed by the coronavirus pandemic, is among the economic recovery proposals under discussion.

They plan to make a formal recommendation to Congress next month.

“One of the things that is very much on the table is a tax deduction for Americans to do tourism activities,” one senior White House official said.

The U.S. Travel Association has proposed a tax incentive for travel of up to $4,000 per household to help restart domestic business and leisure travel.

The association’s proposed tax credit would allow for a refund of 50% of qualified travel expenses through the end of 2021, with qualified expenses defined as any purchase over $50 during travel inside the United States on “meals, lodging, recreation, transportation, amusement or entertainment, business meetings or events, and gasoline.”

President Donald Trump, at a May roundtable with restaurant executives, similarly pushed an “Explore America” tax credit, which he said could be used for “domestic travel, including visits to restaurants.”

An amount for the possible tax break or timeframe for Americans to use it has not been decided.