[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.
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