I
107TH CONGRESS
1ST SESSION
H. R. 3041
To amend the Internal Revenue Code of 1986 to provide tax and other
incentives to maintain a vibrant travel and tourism industry, to keep
working people working, and to stimulate economic growth, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 4, 2001
Mr. SHADEGG (for himself, Mr. ABERCROMBIE, and Mrs. WILSON) introduced
the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
tax and other incentives to maintain a vibrant travel
and tourism industry, to keep working people working,
and to stimulate economic growth, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Travel America Now
Act of 2001’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Prior to September 11, 2001, more than
19,000,000 Americans were employed in travel and
travel-related jobs, with an estimated annual payroll
of $171,500,000,000.
(2) In recent years, the travel and tourism in-
dustry has grown to be the third largest industry in
the United States as measured by retail sales, with
over $582,000,000,000 in expenditures, generating
over $99,600,000,000 in Federal, State, and local
tax revenues in 2000.
(3) In 2000, the travel and tourism industry
created a $14,000,000,000 balance of trade surplus
for the United States.
(4) The travel and tourism industry and all lev-
els of government are working together to ensure
that, following the horrific terrorist attacks on the
World Trade Center and the Pentagon on Sep-
tember 11, 2001, travel is safe and secure, and that
confidence among travelers is maintained.
(5) Urgent, short-term measures are necessary
to keep working people working and to generate cash
flow to assist the travel and tourism industry in its
ongoing efforts to retain its economic footing.
(6) Increased consumer spending on travel and
tourism is essential to revitalizing the United States
economy.
(7) The American public should be encouraged
to travel for personal, as well as business, reasons as
a means of keeping working people working and gen-
erating cash flow that can help stimulate a rebound
in the Nation’s economy.
SEC. 3. PERSONAL TRAVEL CREDIT.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter 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. PERSONAL TRAVEL CREDIT.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount
equal to the qualified personal travel expenses which are
paid or incurred by the taxpayer on or after the date of
the enactment of this section and before January 1, 2002.
‘‘(b) MAXIMUM CREDIT.—The credit allowed to a
taxpayer under subsection (a) for any taxable year shall
not exceed $500 ($1,000, in the case of a joint return).
‘‘(c) QUALIFIED PERSONAL TRAVEL EXPENSES.—
For purposes of this section—
‘‘(1) IN
GENERAL.—The term ‘qualified per-
sonal 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, en-
tertainment, amusement, or recreation.
‘‘(2) QUALIFYING PERSONAL TRIP.—
‘‘(A) IN GENERAL.—The term ‘qualifying
personal trip’ means travel within the United
States—
‘‘(i) the farthest destination of which
is at least 100 miles from the taxpayer’s
residence,
‘‘(ii) involves an overnight stay at a
commercial lodging facility and
‘‘(iii) which is taken on or after the
date of the enactment of this section.
‘‘(B) 
ONLY
PERSONAL
TRAVEL
IN-
CLUDED.—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.
‘‘(d) SPECIAL RULES.—
‘‘(1) DENIAL OF CREDIT TO DEPENDENTS.—No
credit shall be allowed under this section to any indi-
vidual with respect to whom a deduction under sec-
tion 151 is allowable to another taxpayer for a tax-
able 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 (c)(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 sec-
tions 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 fol-
lowing new item:
‘‘Sec. 25C. Personal 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.
SEC. 4. TEMPORARY INCREASE IN DEDUCTION FOR BUSI-
NESS MEALS AND ENTERTAINMENT.
(a) IN GENERAL.—Subsection (n) of section 274 of
the Internal Revenue Code of 1986 (relating to only 50
percent of meal and entertainment expenses allowed as de-
duction) is amended by adding at the end the following
new paragraph:
‘‘(4) TEMPORARY INCREASE IN LIMITATION.—
With respect to any expense or item paid or incurred
on or after the date of the enactment of this para-
graph and before January 1, 2002, paragraph (1)
shall be applied by substituting ‘100 percent’ for ‘50
percent’.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 5. NET OPERATING LOSS CARRYBACK FOR TRAVEL
AND TOURISM INDUSTRY.
(a) IN GENERAL.—Paragraph (1) of section 172(b)
of the Internal Revenue Code of 1986 (relating to years
‘‘(4) ELECTION.—Any taxpayer entitled to a 5-
year carryback under subsection (b)(1)(H) from any
loss year may elect to have the carryback period
with respect to such loss year determined without re-
gard to subsection (b)(1)(H). Such election shall be
made in such manner as may be prescribed by the
Secretary and shall be made by the due date (includ-
ing extensions of time) for filing the taxpayer’s re-
turn for the taxable year of the net operating loss.
Such election, once made for any taxable year, shall
be irrevocable for such taxable year.
‘‘(5) RELATED TAXPAYERS.—Under regulations
prescribed by the Secretary and at the election of a
taxpayer entitled to a 5-year carryback under sub-
section (b)(1)(H) with respect to a travel or tourism
loss, such loss may be credited against the taxable
income earned during the 5-year carryback period by
any member of a controlled group of corporations
(as defined in section 1563(a)) of which the tax-
payer is a component or additional member within
the meaning of section 1563(b).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending before, on,
or after the date of the enactment of this Act.
SEC. 6. CONSTITUTIONAL AUTHORITY TO ENACT THIS LEG-
ISLATION
The constitutional authority upon which this Act
rests is the power of Congress to lay and collect taxes,
set forth in article I, section 8 of the United States Con-
stitution.
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