U.S. Rep. Darin LaHood (R-IL) on Nov. 20 introduced bipartisan legislation to create a refundable tax credit for travel expenditures aimed at boosting business for the nation’s tourism and hospitality sectors impacted by the ongoing pandemic.
“The COVID-19 pandemic and state-mandated closures continue to wreak havoc on communities and industries across Illinois’ 18th district, especially our hospitality, travel and tourism sectors,” Rep. LaHood said. “Congress cannot sit on the sidelines any longer while businesses continue to struggle. This bipartisan bill will give these disproportionately affected businesses the support they need to recover from the impact of the coronavirus pandemic.”
Rep. LaHood signed on as an original cosponsor of the Hospitality and Commerce Job Recovery Act of 2020, H.R. 8802, with bill sponsor U.S. Rep. Steven Horsford (D-NV). The proposed measure is a companion bill to the same-named S. 4807 introduced on Oct. 19 by U.S. Sens. Catherine Cortez Masto (D-NV) and Keven Cramer (R-ND) to establish new tax credits and revise existing credits and deductions to protect the hospitality and restaurant industries, according to the congressional record bill summary.
If enacted, the bill would support the convention and trade show industries by establishing a tax credit for the cost of attending or hosting a convention, business meeting or trade show in the United States between Jan. 1, 2021 and Dec. 31, 2023. It also would make improvements to the Employee Retention Tax Credit; restore the Entertainment Business Expense Deduction; and establish a tax credit for restaurants or food service businesses to cover any costs associated with reopening or increasing service at an establishment forced to close down or reduce operations due to the COVID-19 pandemic, according to a bill summary provided by Rep. LaHood’s office.
“Travel is by far the industry hardest hit by the ongoing fallout of the pandemic — accounting for 42 percent of all jobs lost in the U.S. since the start of the pandemic,” said Tori Emerson Barnes, executive vice president of public affairs and policy at the U.S. Travel Association. “Without recovery measures like this bill, the industry is expected to take at least five years to recover to pre-pandemic levels of employment and economic activity.”
The legislation is also endorsed by the American Hotel and Lodging Association and the American Bus Association.