LaHood Leads Effort to Revive
Hospitality and Tourism Industries
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[November 23, 2020]
Representatives Darin LaHood (IL-18), Steven Horsford (NV-04), and
Jimmy Panetta (CA-20) today introduced the bipartisan Hospitality
and Commerce Job Recovery Act to revitalize the tourism and
hospitality industries, which have been severely impacted by the
ongoing COVID-19 pandemic.
A companion to the U.S. Senate legislation introduced by Senators
Catherine Cortez Masto (D-Nev.) and Keven Cramer (R-N.D.), the
Hospitality and Commerce Job Recovery Act will provide comprehensive
relief for the convention, entertainment, hospitality, and travel
industries and their workers by creating new recovery incentives and
enhancing the employee retention tax credit until frequent travel
and tourism safely resumes.
“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,” said Rep.
LaHood. “Congress cannot sit on the sidelines any longer while
businesses continue to struggle. This bipartisan bill will give
these disproportionally affected businesses the support they need to
recover from the impact of the coronavirus pandemic.”
“The hospitality, travel and tourism industries employ nearly 30
percent of Southern Nevada’s workers and are the lifeblood of our
state’s economy. These sectors face unprecedented hardships amid the
COVID-19 pandemic and have made every effort to keep their employees
and customers safe as they fight to stay in business,” said
Congressman Horsford. “I’m proud to introduce the Hospitality and
Commerce Job Recovery Act to give them and their workers a fighting
chance as we navigate these challenging times.”
“If we don’t pass an economic relief package soon, our economy,
including our local hospitality industry, will be severely damaged
for years to come. The tax credits provided in our Hospitality and
Commerce Jobs Recovery Act would provide much-needed revenue to
those businesses so that they can preserve jobs and come back
stronger than ever,” said Congressman Panetta. “This type of
legislation is vital to protect the 22,000 travel and tourism
employees who call the Central Coast home.”
“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 5 years to recover to
pre-pandemic levels of employment and economic activity. By
targeting tax incentives on the areas that need the most
help—including in the meetings and events and entertainment
sectors—the Hospitality and Commerce Job Recovery Act will provide a
significant boost to rebuilding travel jobs, helping to ensure the
millions of Americans that rely on travel for income can get the
financial stability they need. We thank Representatives Horsford,
LaHood, and Panetta for taking a bold stand on behalf of America’s
travel workforce.”
“The bipartisan Hospitality and Commerce Job Recovery Act,
introduced thanks to the continued leadership by Representatives
Horsford and LaHood, is exactly what the hotel industry needs to
help recover, bring back jobs, and reignite a continued investment
in the communities they serve. The pandemic has all but decimated
the hotel industry, with business and leisure travel grinding to a
near halt and occupancy rates hitting record lows.
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"Our data shows that 7 in 10 hoteliers won’t make it another six
months without further federal assistance given the current drop in
projected travel demand. That will have a ripple effect throughout
our communities for years to come,” said Chip Rogers, president and
CEO of the American Hotel & Lodging Association.
“Now, with the new surge in COVID-19 cases, we expect fewer
Americans to travel this holiday season and we are incredibly
worried about the coming months and what the drop in demand will
mean for the industry and the millions of employees we have been
unable to bring back. Our industry’s priorities have always focused
on retaining and rehiring our workforce, and the tax incentives
provided in this bill will alleviate some of the strain felt by the
hospitality industry during this crisis and allow us, and the
broader economy, to move towards recovery.”
“We applaud Reps. LaHood and Horsford for their commitment to job
recovery especially in the hospitality and commerce sectors,” said
Peter Pantuso, president & CEO of the American Bus Association. “Few
industries have been hit harder by the COVID-19 pandemic as millions
of people find themselves furloughed or unemployed, and the economy
is losing hundreds of billions of dollars because people are not
traveling right now. The men and women who rely on travel and
tourism need help from Congress and they need it now.”
Background:
The COVID-19 pandemic presents a tremendous challenge to both public
health and the economy, and no industry in the U.S. has been more
severely impacted than the travel and hospitality sector. According
to the Bureau of Labor Statistics, employment in travel and tourism
has fallen by 23.9% across the nation this year.
The Hospitality and Commerce Job Recovery Act would address the
significant challenges facing the tourism and hospitality industries
as the U.S. continues to work toward recovering from the COVID-19
pandemic. Specifically, the Hospitality and Commerce Job Recovery
Act 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
January 1, 2021 and December 31, 2023.
-
Make
improvements to the Employee Retention Tax Credit.
-
Restore the Entertainment Business Expense Deduction.
-
Support the restaurant industry by establishing a tax credit for
restaurants or food service businesses, covering any cost
associated with reopening or increasing service at an
establishment forced to close down or reduce operations due to
the COVID-19 pandemic—including any renovation, remediation,
testing, or labor cost needed to prevent the spread of COVID-19.
Credit would be effective between the date of enactment and
December 31, 2022.
-
Provide a modest tax credit for qualified travel expenses for
many Americans.
[Congressman Darin LaHood] |