President Biden signed the American Rescue Plan Act of 2021 (HR 1319), a $1.9 trillion package that aims to provide additional relief from the economic hardships caused by the COVID-19 pandemic.

Here are some of the package highlights:

State and Local Aid: $350 billion to assist states, counties, cities, and tribal governments manage fiscal challenges associated with the COVID-19 pandemic.

Economic Impact Payment: Direct payments of $1,400 for most individuals with an adjusted gross income of less than $75,000.  Payments will phase out for individuals above $75,000 and be zero for individuals $80,000 and above.  Payment calculations will be based on 2019 or 2020 tax filings.

Tax Provisions:

• Earned Income Tax Credit: Expansion of the EITC amount and eligibility for certain taxpayers.
• Child Tax Credit: Increases the Child Tax Credit maximumamounts, expands eligibility to 17-year old’s, and makes the credit fully refundable.
• Dependent Care: Temporary increase to the child and dependent care tax credit including making it refundable.
• Employee Retention Credit: Extends the employee retention credit established by the CARES Act through December 31, 2021.
• Paid Leave Credits: Extends tax credits for employer-provided paid sick and family leave established under the Families First Coronavirus Response Act through September 30, 2021.
• Expanded Unemployment:  Extends the many unemployment assistance provisions through September 6, 2021 and makes the first $10,200 in unemployment benefits tax-free.

Small Business Provisions:  $7.25 billion for the Paycheck Protection Program (PPP) forgivable loans and expands eligibility for larger nonprofits.  This does not extend the March 31, 2021 deadline for loans.

Education:  Funding to support school and student relief programs.

Health and Human Services:  Significant funding for vaccine development and distribution, childcare programs, Medicaid and Medicare programs, COBRA continuation coverage, expanded Supplemental Nutrition Assistance Program Funding, and funding for emergency housing and rental relief.

Additional Items:  Funding for Homeland Security disaster planning, agricultural relief programs, assistance and funding for transportation and other infrastructure.

As more details are released by the administration the CSC will provide updates with new information.

For additional questions please contact Mark Martinez: mmartinez@calstrawberry.org