News

American Rescue Plan of 2021 Highlights
 
03/15/2021 02:35 PM

The American Rescue Plan of 2021, the $1.9 trillion stimulus legislation recently passed by Congress, expands support for small business through the Paycheck Protection Program (PPP), new grant programs for restaurants and employer tax credits.

 

The IRS webpage says the agency is reviewing implementation plans for the newly enacted  legislation and additional information about a new round of Economic Impact Payments, the expanded Child Tax Credit, including advance payments of the Child Tax Credit, and other tax provisions will be made available as soon as possible on IRS.gov.

 

Some highlights of the legislation gathered from various sources:

  • PPP receives $7.25 billion and allows bigger PPP Loans for Sole Proprietors. PPP application process will still close March 31, 2021.

  • Employee Retention Tax Credit (ERTC) extended through 12/31/2021: Tax credits for up to $33,000 for employee wages paid since March 12, 2020.

  • $25 Billion Restaurant Revitalization Fund: New grants for restaurants and bars up to $5 million per location. This program will be administered through the SBA and details are not yet available.

  • $15 billion addition to SBA’s Economic Injury Disaster Loan program

  • Individuals receive an additional $1,400 direct payment, topping off the $600 passed as part of the Consolidated Appropriations Act of 2021 (CCA21) in December 2020, for a combined $2,000 per individual.

     

    Unemployment Programs

  • The Pandemic Unemployment Assistance (PUA) program, for workers not traditionally eligible for unemployment insurance (such as independent contractors and gig workers), was set to expire on March 14, 2021. It has now been extended through September 6, 2021, and the number of eligibility weeks have been increased from 50 weeks to 79 weeks.

  • Pandemic Emergency Unemployment Compensation (PEUC) provides additional weeks of unemployment insurance benefits to individuals who have exhausted their state unemployment benefits. PEUC was also set to expire on March 14, 2021, but the program has been extended through September 6, 2021. Eligibility weeks have been increased from 24 weeks to 53 weeks.

  • The Federal Pandemic Unemployment Compensation (FPUC) program supplement of $300 per week, which was also set to expire on March 14, 2021, will be extended through September 6, 2021.

 

Employer Tax Credits

Tax credits offset costs for employers that voluntarily provide Families First Coronavirus Response Act (FFCRA) emergency paid sick leave or expanded family and medical leave to employees. The tax credits are available from April 1, 2021, through September 30, 2021.

 

State and Local Aid

American Rescue Plan includes $350 billion in flexible aid for state and local governments, $20 billion for tribal governments, and $20 billion to support public transit. Virginia will receive $9 billion.

 

Pandemic-Related Medical Aid

$160 billion for vaccine distribution, an expansion of testing, and support to reduce critical supply shortages. 100 percent coverage for the administration of vaccines. Subsidizes continued health coverage (COBRA) for those who lose their employer-sponsored health insurance through September 30, 2021. It increases the value of the Premium Tax Credit used on individual health insurance exchanges to ensure individuals pay no more than 8.5 percent of income for health insurance coverage.

 

Education Relief

$170 billion to support school reopening and funding for post-secondary education and $25 billion in support of childcare providers.

 

Rental Assistance

Renters and small landlords would receive $30 billion of support. The eviction and foreclosure moratorium and continued forbearance for federally guaranteed mortgages would be extended through September 30, 2021.

 

Expanded Paid Sick and Family Leave

Paid sick and family medical leave is now available through September 30, 2021, for workers who need to quarantine, provide care to family members with COVID-19, or take care of children when daycare or schools are closed. Expanded leave would include a maximum paid leave benefit of $1,400 per week for eligible workers, up to a full wage replacement of up to $73,000 annually.

 

Nutrition Assistance

The 15 percent benefit increase for the Supplemental Nutrition Assistance Program (SNAP) provided in December for the first six months of 2021 would be extended through September 2021 to reduce food insecurity through the year.

 
 
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