What's the difference between saying: I'm very much looking forward to it.

What's the difference between saying:

We're taking a road trip to Lake Tahoe for my cousin's wedding, so I'm very much looking forward to it.

VS

We're taking a road trip to Lake Tahoe for my cousin's wedding, so I'm very much looking forward to that.

Are both okay?

They are both OK.

Batman45 said:

What's the difference between saying:

We're taking a road trip to Lake Tahoe for my cousin's wedding, and I'm very much looking forward to it.

Are both okay?

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Both are grammatical, and both make sense. In ordinary conversation you would be more likely to say it than that, and you would almost certainly say and, not so.

By the way, congratulations on your correct use of the apostrophe and comma!