The American Rescue Plan of 2021 was signed into law by President Biden on March 11, 2021 and provides many new tax provisions and funding to various sectors of the United States. The notable financial changes are listed below broken out between individual and business provisions. Please click on the topic for additional information. We will update our website with additional information as it becomes available.
Individual Provisions
- Recovery Rebates (Stimulus Checks) for Individuals
- Unemployment Benefits
- Child Tax Credit
- Earned Income Tax Credit
- Child & Dependent Care Credit
- Paid Sick & Family Leave Credits under the Families First Coronavirus Response Act
- Premium Tax Credit
- Temporary percentages have been increased for 2021 and 2022. See the full law for the table.
- Taxpayers who received too much in advance premium tax credits in 2020 will not have to repay the excess amount.
- A taxpayer who has received, or has been approved to receive, unemployment compensation for any week beginning during 2021 should be treated as an applicable taxpayer.
- Excess Business Losses on Non-Corporate Taxpayers
- There has been an extension of the limitation on excess business losses of non-corporate taxpayers from January 1, 2026 to January 1, 2027.
- Student Loan Forgiveness Taxability
- Any student loan discharged from January 1, 2021 through December 31, 2025 is not includable in income on a taxpayer’s return unless the discharge is in exchange for services performed for the organization discharging the debt.
Business Provisions
- Modifications to Paycheck Protection Program
- Targeted EIDL Advance
- Restaurant Revitalization Grants
- Changes to Employee Retention Credit
- Paid Sick & Family Leave Credits under the Families First Coronavirus Response Act
A full copy of the law can be found here.