Below we have assembled a brief summary of some of the business taxpayer provisions of the American Rescue Plan Act of 2021 (ARPA), passed on March 11, 2021.
Extension of the paid sick and expanded family and medical leave tax credits
Payroll tax credits. Paid sick leave and family leave credits are extended to apply to apply to wages paid through September 30, 2021. This credit had previously only applied to wages paid up to of March 31, 2021.
Self-employment sick and family leave credits. These credits, which are creditable against the income tax for self-employed individuals, have also been extended to apply to eligible days through September 30, 2021.
Other notes. Both of these credits now expand eligible leave to include obtaining and recovering from COVID-19 immunization.
Tax-Free Treatment of Restaurant Revitalization Grants
Taxability of Restaurant Revitalization Grants . ARPA allows for tax-free treatment of the SBA Restaurant Revitalization Grants. Under ARPA, these advances aren’t included in income and taxpayers are allowed a deduction for expenses paid with these tax-free grants.
We hope you find these updates useful. If you have any questions, please don’t hesitate to contact our office.