President Trump wants you to take a vacation. What's more, he wants to help pay for it. That's sort of the gist of a new proposal for a tax credit that's floating around. The 'Explore America' tax credit would give Americans up to $4,000 in credits when they book vacations at hotels, theme parks, restaurants and other tourism spots around the country. The credit period would last up through the end of 2021.
The proposed vacation tax credit would cover up to 50 percent of a household's total vacation expenses up to $4,000. The credit would undoubtedly benefit the battered tourism industry immensely. However, it's possible that everyone might win if the proposal is approved. The tourism industry was contributing roughly $2.6 trillion to the economy prior to the COVID-19 crisis. Travel in the United States also supported 15.8 million jobs prior to the crisis. It works out to be about one out of every 10 Americans. Unfortunately, the travel industry was hit hard by COVID-19. In fact, roughly 40 percent of all jobs lost in April alone were related to travel and tourism.
It's hard to say what the fate of the 'Explore America' proposal will be. No official legislation has been introduced in Congress as of right now. However, buzz is certainly running through the travel industry because many believe this is what will help the sector to begin a big comeback. The fact that this credit would be in effect until the end of 2021 means that next summer could shape up to be one of the biggest travel summers on record if COVID-19 fears are eased by then.