American Rescue Plan.pdf

The American Rescue Plan Act (ARPA) includes individual stimulus checks of $1,400 for single taxpayers earning less than $75,000 and $2,800 for married taxpayers earning less than $150,000, with payments phasing out at $80,000 and $160,000 respectively. The act also renews federal unemployment benefits at $300 per month through September 6, 2021, and makes the first $10,200 of unemployment insurance benefits non-taxable for households with incomes at or below $150,000. Additionally, the ARPA provides funding for industries impacted by the pandemic, including $15 billion for airlines, $25 billion for restaurants and bars, and $7.25 billion for the Paycheck Protection Program. The act also makes changes to the child tax credit, including making it fully refundable for 2021, increasing the amount of the credit to $3,000 for children over seven and $3,600 for children 0-6, and directing the IRS to estimate and pay the credit in advance monthly from July through December 2021. Other provisions include a 100% subsidy of COBRA health insurance premiums, expansion of the Earned Income Tax Credit, and extension of various tax credits, including the Employee Retention Credit and Family and Sick Leave Credits.