[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1500 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1500
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 SENATE OF THE UNITED STATES
October 4, 2001
Mr. Kyl (for himself and Mr. Miller) 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 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.
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 ``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 industry 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 levels of
government are working together to ensure that, following the
horrific terrorist attacks on the World Trade Center and the
Pentagon on September 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 generating 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 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. PERSONAL 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 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 personal 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 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 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.
``(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 (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 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. 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 BUSINESS 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 deduction) 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 paragraph 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 to which loss may be carried)
is amended by adding at the end the following new subparagraph:
``(H) Travel and tourism industry losses.--In the
case of a taxpayer which has a travel or tourism loss
(as defined in subsection (j)) for a taxable year that
includes any portion of the period beginning on or
after September 12, 2001, and ending before January 1,
2002, such travel or tourism loss shall be a net
operating loss carryback to each of the 5 taxable years
preceding the taxable year of such loss.''.
(b) Special Rules for Travel and Tourism Industry Losses.--Section
172 of the Internal Revenue Code of 1986 (relating to net operating
loss deduction) is amended by redesignating subsection (j) as
subsection (k) and by inserting after subsection (i) the following new
subsection:
``(j) Rules Relating to Travel and Tourism Industry Losses.--For
purposes of this section--
``(1) In general.--The term `travel or tourism loss' means
the lesser of--
``(A) the amount which would be the net operating
loss for the taxable year if only income and deductions
attributable to the travel or tourism businesses are
taken into account, or
``(B) the amount of the net operating loss for such
taxable year.
``(2) Travel or tourism business.--The term `travel or
tourism business' includes the active conduct of a trade or
business directly related to travel or tourism, including--
``(A) the provision of commercial transportation
(including rentals) or lodging,
``(B) the operation of airports or other
transportation facilities or the provision of services
or the sale of merchandise within such facilities,
``(C) the provision of services as a travel agent,
``(D) the operation of convention, trade show, or
entertainment facilities, and
``(E) the provision of other services as specified
by the Secretary.
``(3) Coordination with subsection (b)(2).--For purposes of
applying subsection (b)(2), a travel or tourism loss for any
taxable year shall be treated in a manner similar to the manner
in which a specified liability loss is treated.
``(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 regard 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 (including
extensions of time) for filing the taxpayer's return 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 subsection (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 taxpayer 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.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S10293-10294)
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S10294-10295)
Sponsor introductory remarks on measure. (CR S11605)
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