To amend the Internal Revenue Code of 1986 to provide a credit against income tax for costs of travel for purposes of making retail purchases in States that do not impose sales tax.

Summary: Consumer Travel Tax Credit Holiday Act of 2001 - Amends the Internal Revenue Code to allow an individual a credit for qualified travel expenses incurred from December 7, 2001 through December 16, 2001. Restricts such expenses to travel and lodging costs in connection with trips to Alaska, Delaware, Montana, New Hampshire, or Oregon (non-sales tax States).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Travel Tax Credit Holiday 
Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Consumer confidence and spending is critical to a 
        healthy United States economy.
            (2) In order to prevent a further decline in consumer 
        spending, which fell 1.8 percent in September 2001, and 
        consumer confidence, which is at its lowest level since 
        February 1994, the Federal Government needs to provide an 
        immediate and targeted tax incentive to encourage consumer 
        spending.
            (3) The most immediate and targeted incentive for 
        consumption would be to reduce the price of goods to consumers, 
        which can be done most effectively by providing a tax incentive 
        to individuals to make retail purchases.
            (4) A 10-day consumer travel tax credit holiday, prior to 
        the 2001 holiday season, would encourage Americans to make 
        immediate purchases and help to counteract the decline in 
        consumer confidence Americans have experienced since September 
        11, 2001. The direct boost to consumption resulting from such 
        tax incentive would enhance the benefits of individual tax cuts 
        provided by any Federal tax stimulus legislation.
            (5) Alaska, Delaware, Montana, New Hampshire, and Oregon 
        currently do not impose a State sales tax. These States have 
        worked hard to establish a State tax structure that does not 
        include a sales tax. Any economic stimulus proposals relating 
        to sales tax must include proportional relief to these five 
        States, which have chosen not to impose a sales tax. These five 
        sales-tax-free States should not be penalized for choosing the 
        tax structure best for their State by being excluded from sales 
        tax holiday relief. A tax credit for travel for the purpose of 
        making retail purchases in those States would provide a benefit 
        to consumers similar to a sales tax holiday in other States.

SEC. 3. CREDIT FOR TRAVEL FOR PURPOSES OF RETAIL PURCHASES IN STATES 
              NOT IMPOSING SALES TAX.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25B the 
following new section:

``SEC. 25C. TRAVEL CREDIT.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the qualified travel expenses 
which are paid or incurred by the taxpayer during the consumer travel 
tax credit period.
    ``(b) Qualified Travel Expenses.--For purposes of this section--
            ``(1) In general.--The term `qualified travel expenses' 
        means reasonable expenses in connection with a qualifying 
        personal trip for--
                    ``(A) travel by aircraft, rail, watercraft, or 
                motor vehicle, and
                    ``(B) lodging while away from home at any 
                commercial lodging facility.
        Such term does not include expenses for meals, entertainment, 
        amusement, or recreation.
            ``(2) Qualifying personal trip.--
                    ``(A) In general.--The term `qualifying personal 
                trip' means travel within the United States--
                            ``(i) the destination of which is Alaska, 
                        Delaware, Montana, New Hampshire, or Oregon, 
                        and
                            ``(ii) the purpose of which is to purchase 
                        at retail tangible property of a type that 
                        would be subject to sales tax in any State not 
                        listed in clause (i).
                    ``(B) Only personal travel included.--Such term 
                shall not include travel if, without regard to this 
                section, any expenses in connection with such travel 
                are deductible in connection with a trade or business 
                or activity for the production of income.
            ``(3) Commercial lodging facility.--The term `commercial 
        lodging facility' includes any hotel, motel, resort, rooming 
        house, or campground.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Consumer travel tax credit period.--For purposes of 
        this section, the term `consumer travel tax credit period' 
        means the period beginning on December 7, 2001, and ending 
        before December 17, 2001.
            ``(2) Sales tax.--The term `sales tax' means--
                    ``(A) a tax imposed on or measured by general 
                retail sales of taxable tangible property, or services 
                performed incidental to the sale of taxable tangible 
                property, that is--
                            ``(i) calculated as a percentage of the 
                        price, gross receipts, or gross proceeds, and
                            ``(ii) can or is required to be directly 
                        collected by retail sellers from purchasers of 
                        such property,
                    ``(B) a use tax, or
                    ``(C) the Illinois Retailers' Occupation Tax, as 
                defined under the law of the State of Illinois,
        but excludes any tax payable with respect to food and beverages 
        sold for immediate consumption on the premises, beverages 
        containing alcohol, and tobacco products.
            ``(3) Use tax.--The term `use tax' means a tax imposed on 
        the storage, use, or other consumption of tangible property 
        that is not subject to sales tax.
    ``(d) Special Rules.--
            ``(1) Denial of credit to dependents.--No credit shall be 
        allowed under this section to any individual with respect to 
        whom a deduction under section 151 is allowable to another 
        taxpayer for a taxable year beginning in the calendar year in 
        which such individual's taxable year begins.
            ``(2) Expenses must be substantiated.--No credit shall be 
        allowed by subsection (a) unless the taxpayer substantiates by 
        adequate records or by sufficient evidence corroborating the 
        taxpayer's own statement the amount of the expenses described 
        in subsection (b)(1).
    ``(e) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any expense for which credit is allowed under 
this section.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting before the item relating to section 26 the 
following new item:

                              ``Sec. 25C. Travel credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.