Tax Update Blog

House Budget Committee releases legislative text for COVID-19 rescue plan ahead of Monday hearing

February 19, 2021 | Blog
By Jay Heflin

The House Budget Committee on Friday released the legislative text for the COVID-19 rescue bill that President Joe Biden hopes to sign into law by mid-March.

The legislation includes provisions from nine House committees, including the tax-writing House Ways and Means Committee, which last week vetted and passed its rescue plan. The House Budget Committee did not make changes to what the tax-writing committee approved.

The House Budget Committee on Monday will “markup” the bill, meaning the committee can make some changes to the underlying legislation, but those changes cannot materially change the bill.

The legislation is expected to pass the House Budget Committee and the House is expected to vote on the measure late next week where passage is also expected. After action in the House, the package will go to the Senate.

Below are some of the provisions that the House Ways and Means Committee approved for the rescue plan: 

  • A $1,400 refundable tax credit for each family member, which shall be paid out in advance payments. The credit phases out between $75,000 and $100,00 of adjusted gross income ($112,500 and $150,000 for head of household filers and $150,000 and $200,000 for joint filers) based on information on 2019 or 2020 tax returns. 
  • Extending the Employee Retention Credit from July 1, 2021, to January 1, 2022.
  • Extending temporary federal unemployment and benefits through August 29, 2021, and increasing the weekly enhanced benefit from $300 to $400.
  • Expanding the Child Tax Credit to $3,000 per child 17 years old and under ($3,600 for children under 6) and makes it fully refundable and advanceable.
  • Expanding the Child and Dependent Tax Credit to allow families to claim up to half of their childcare expenses.
  • Enhancing the Earned Income Tax Credit for workers without children by nearly tripling the maximum credit and extending eligibility.
  • Reducing health care premiums for low- and middle-income families by increasing the Affordable Care Act’s (ACA) premium tax credits for 2021 and 2022.
  • Excluding amounts received from the Administrator of the Small Business Administration in the form of a Restaurant Revitalization Grant from gross income.

The House Ways and Means Committee’s section-by-section summary of its provisions can be found here.

Stay informed!

This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.