Title: American TRIP Act
Policy area: Taxation

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4031 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4031

  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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 22, 2020

  Ms. McSally introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Tax Rebate and Incentive 
Program Act'' or the ``American TRIP Act''.

SEC. 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 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 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' means any expenses which are paid or 
        incurred by the taxpayer during any period of qualifying travel 
        which are related to any of the following:
                    ``(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' means any 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 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Travel, hospitality, and entertainment expenses.''.

SEC. 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'' means a nonprofit 
        entity, a State, or a political subdivision of a State 
        (including any instrumentality of such entities) engaged in 
        marketing and promoting communities and facilities to 
        businesses and leisure travelers through a range of activities, 
        including--
                    (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'' means the Secretary 
        of Commerce.
            (3) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
    (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.
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