HR 1319 – American Rescue Plan Act of 2021 Passes the House and is Headed to President Biden
The United States House voted on and passed the Senate version of the $1.9 Trillion COVID-19 Relief Bill (HR 1319 – American Rescue Plan Act of 2021). This Act is over 600 pages and includes added Coronavirus Economic Aid provisions that have been discussed at length over the last several months.
The Senate bill that was passed out of the House today retains most of the House bill's tax provisions unchanged. However, under the Senate bill, a few provisions will phase out more quickly than in the previous rounds of stimulus bills. These provisions that phase out more quickly include:
- Eligibility for the recovery rebate credits (to be paid to most taxpayers in advance as economic impact payments) would phase out more quickly than it did in the two previous rounds.
- Stimulus checks - for single taxpayers, the phaseout will begin at an adjusted gross income (AGI) of $75,000 and will be completely phased out for those with an AGI over $80,000. For married taxpayers who file jointly, the phaseout will begin at an AGI of $150,000 and end at an AGI of $160,000. For heads of households, the phaseout will begin at an AGI of $112,500 and be complete at an AGI of $120,000.
The Senate bill also:
- Provides $300 a week in federal unemployment benefits through Sept. 6 and makes the first $10,200 in unemployment benefits tax-free in 2020 for households making less than $150,000 per year.
- Does not raise the federal minimum wage, which the House bill would have increased to $15 per hour.
- Will not include funding for a bridge to Canada in upstate New York over the St. Lawrence seaway or the extension of a railway system near San Francisco. Funding for both projects was included in the House bill.
- Specifies that gross income does not include any amount that would otherwise be included in income due to any student loan discharge after Dec. 31, 2020, and before Jan. 1, 2026.
The legislation will provide funding for state, local and Tribal governments; K-12 schools and colleges and universities; COVID-19 testing and support of the vaccine rollout; and small businesses.
The next steps are for President Biden to sign this Bill for it to begin taking effect.