American TRIP Act

To amend the Internal Revenue Code of 1986 to establish a temporary nonrefundable personal tax credit for travel, hospitality, and entertainment expenses, and for other purposes. 1. Short title This Act may be cited as the American Tax Rebate and Incentive Program Act American TRIP Act 2. Temporary nonrefundable personal credit for travel, hospitality, and entertainment expenses (a) In general Subpart A of part IV of subchapter A of chapter 1 25E. Travel, hospitality, and entertainment expenses (a) In general 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 lesser of— (1) any eligible expenses paid or incurred by the taxpayer during such taxable year, or (2) an amount equal to— (A) $4,000 ($8,000 in the case of a joint return), plus (B) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer. (b) Eligible expenses (1) In general For purposes of this section, the term eligible expenses (A) Food and beverages. (B) Lodging. (C) Transportation. (D) Live entertainment events (including sporting events). (E) Expenses related to attending a conference or business meeting. (2) Qualifying travel (A) In general For purposes of this section, the term qualifying travel (i) which occurs within the United States (including any territory or possession of the United States), (ii) for which the final destination is not less than 50 miles from the principal residence of the taxpayer (within the meaning of section 121), and (iii) which occurs after December 31, 2019, and before January 1, 2022. (B) Vacation home For purposes of subparagraph (A)(ii), the final destination may include any other residence owned by the taxpayer which is not the principal residence of the taxpayer, except that any expenses paid or incurred by the taxpayer for lodging (as described in paragraph (1)(B)) with respect to such residence shall not be included as eligible expenses under this section. (C) Use of personal vehicle With respect to a motor vehicle used for qualifying travel which is owned or leased by the taxpayer, the amount of any vacation expenses described in paragraph (1)(C) with respect to the use of such motor vehicle shall be determined using the standard mileage rate in effect under section 162(a) at the time of such use. (c) Exclusion of business travel expenses No credit shall be allowed under subsection (a) with respect to any expenses with respect to which a deduction is allowed or allowable to the taxpayer under section 162(a)(2). (d) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including rules for itemization of any eligible expenses claimed by the taxpayer (in such form and manner as is deemed appropriate by the Secretary) for purposes of the credit allowed under this section. . (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 Sec. 25E. Travel, hospitality, and entertainment expenses. . 3. Destination marketing organization grant program (a) In general The Secretary shall establish a program to provide grants to each State to support destination marketing organizations. (b) Amount The amount of the grant that shall be provided to each State shall be— (1) determined in such manner as is deemed appropriate by the Secretary, and (2) disbursed by the Secretary to such State not later than 30 days after the date of enactment of this Act. (c) Use of funds Any funds provided to a State under this section shall be transferred by such State to any destination marketing organizations located within such State, in such manner as is determined appropriate by such State. (d) Definitions (1) Destination marketing organization The term destination marketing organization (A) assisting with the location of meeting and convention sites; (B) providing travel information on area attractions, lodging accommodations, and restaurants; (C) providing maps; and (D) organizing group tours of local historical, recreational, and cultural attractions. (2) Secretary The term Secretary (3) State The term State (e) Guidance Not later than 30 days after the date of enactment of this Act, the Secretary shall prescribe such rules and guidance as may be necessary to carry out the purposes of this section, including any measures as are deemed appropriate for purposes of ensuring appropriate transfer of funds by States under subsection (c). (f) Authorization of appropriations To carry out the purposes of this section, there is authorized to be appropriated $50,000,000 for fiscal year 2021, to remain available until expended.

Summary: American Tax Rebate and Incentive Program Act or the American TRIP Act This bill allows individual taxpayers a new nonrefundable tax credit in 2020 and 2021 for certain travel, hospitality, and entertainment expenses. The bill directs the Department of Commerce to award grants to states to support destination marketing organizations. The bill defines destination marketing organization as a state or nonprofit entity engaged in marketing and promoting communities and facilities to business and leisure travelers by assisting with the location of meeting and convention sites, providing travel information and maps, and organizing group tours.