# Hospitality and Commerce Job Recovery Act of 2021

This bill is designed to help businesses in the travel, hospitality, and food industries recover from the economic damage caused by COVID-19 shutdowns. It does this primarily through tax credits—essentially money the government gives back to qualifying businesses to help them reopen and get back on their feet.

The bill creates several different tax credits targeting specific industries. Hotels, convention centers, and event venues can claim credits to cover their costs of reopening safely after COVID closures, including expenses for cleaning, protective equipment, employee testing, and renovations needed to prevent disease spread. Similarly, restaurants and food service businesses get tax credits for their restart costs. Companies that send employees to conventions and trade shows can claim credits covering registration fees, lodging, and exhibition costs. There's also a credit for businesses in the food and beverage industry that had to destroy inventory that spoiled or expired during the pandemic—they can get back 90 percent of those costs.

Additionally, the bill makes it easier for businesses to deduct entertainment and meal expenses for the next couple of years, temporarily loosening restrictions that normally limit these deductions. It extends a tax credit that encourages employers to keep workers on payroll, pushing the deadline from mid-2021 to the start of 2022. Finally, the bill creates a personal tax credit for individuals who take vacations—people can claim 50 percent of their travel expenses (up to $1,500, or $2,000 if they have kids) as a tax credit, as long as they're traveling within the United States and staying overnight at least 50 miles from home.

Most of these credits expire after 2022 or 2023, making them temporary relief measures rather than permanent changes to the tax code.

Hospitality and Commerce Job Recovery Act of 2021

Horsford, Steven

Hospitality and Commerce Job Recovery Act of 2021 This bill extends existing and establishes new tax credits that assist the hospitality and restaurant industry. Specifically, it <ul> <li>allows a convention	and trade show restart tax credit;</li> <li>extends the employee retention tax credit through 2021;</li> <li>suspends for taxable years 2021 through 2022, the limitation on entertainment expenses related to a trade or business, </li> <li>allows a restaurant and dining restart credit for businesses closed or forced to reduce services due to COVID-19 (i.e., coronavirus disease 2019); </li> <li>allows a 50% tax credit for travel expenditures; and </li> <li>allows a tax credit for unmerchantable inventory for the period between December 31, 2019, and before April 1, 2021.</li> </ul>