Welcome to the first episode of the Travel Well with Allan Wright!
Our team created two recent webinars on the safety of travel during the COVID-19 pandemic that were well received. As a result of that, we have decided to create a series of weekly, two- to three- minute videos that update you, our traveling community, about the current state of travel.
This episode discusses the proposed travel tax credit that would give families a $4,000 tax credit towards vacation expenses to be used by the end of 2021.
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Can’t watch video right now? Here’s the video transcript:
Hi. My name is Allan Wright and I am the founder and president of Zephyr Adventures and Taste Vacations. Our team created two recent webinars on the safety of travel during the COVID-19 pandemic that were well received. As a result of that, we have decided to create a series of weekly, two- minute videos that update you, our traveling community, about the current state of travel.
Welcome to the first one: Travel Well With Allan.
On May 18th, 25 days ago, President Trump met with restauranteurs to talk about supporting the industry. He proposed an “Explore America” Travel Credit. The draft proposal being discussed now would give families a $4,000 tax credit towards vacation expenses to be used by the end of 2021.
Now, the travel industry has been hit hard by the pandemic – probably, worldwide, the single hardest hit industry. Revenue has pretty much stopped completely, several major airlines have already declared bankruptcy in Latin America, Lufthansa is selling a stake to the German government, Hertz filed for bankruptcy protection, and more travel companies will go under.
A $4,000 travel credit would certainly help.
Think about this: If you were given a $4,000 tax credit to cover your travel expenses, you could choose to fly across the country to visit your parents whom you haven’t seen for months. You could take quite a few weekend car trips with hotels and meals included. You could even take a Zephyr Adventures or Taste Vacations tour!
So, yes, a travel expenses credit would be great. But I have my hesitations. First, this idea hardly got any mainstream exposure over the last 25 days and only now is getting some press. It is a long way from being enacted by congress. Second, any law that does pass will likely have lots of restrictions so Congress can direct how people spend their money. Third, in the end, controlling the novel coronavirus will be more important than encouraging people to travel.
I am sure once you feel it is safe, you will start making travel plans, whether there is a tax credit or not.