The best way to stimulate the tourism industry is to get people out on the road. But in a wary world, how do you do that? One way might be to offer them a tax credit to travel.
The Taxation Policy Taskforce (TPT) recently announced support for proposed legislation which will offer tax incentives to the American public to travel.
Established by the World Travel & Tourism Council (WTTC), New York, N.Y. (www.wttc.org), the TPT unanimously endorsed a proposal that would provide a tax credit of up to $500 per individual or $1,000 for a couple filing jointly for qualified personal travel and tourism. The proposal is awaiting U.S. congressional approval.
The TPT is comprises academics, private sector leaders, and government officials working in the travel and tourism industry.
Specifically, the proposal contained in Senate bill S. 1500 and H.R. bill 3041 includes: a tax credit for qualified personal travel expenses; full deductibility for business entertainment expenses; and an extended carry-back period for travel or tourism industry losses.
In assessing the initiative, the TPT measured the proposal against WTTC's Intelligent Taxation guidelines, concluding that it adhered to criteria on efficiency, simplicity, and effective stimulus to growth.