American Rescue Plan Act of 2021

 

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 into law.

The Act includes extensions of:

  • enhanced unemployment relief,
  • increase funding for Covid-19 testing and vaccination programs,
  • aid to state and local governments
  • assistance to schools to help get students back into classrooms

The Act also includes a number of tax provisions, including:

INDIVIDUAL TAX RELIEF

  • a third round of direct stimulus payments- Recovery Rebates
  • enhanced Child Tax Credit
  • enhanced Earned Income Credit
  • enhanced Child and Dependent Care Credits
  • extension of unemployment relief
  • exclusion of forgiven student loans

EMPLOYER TAX RELIEF

  • paid sick and family leave credits
  • employee retention tax credits