Skip to content

Navigating New Provisions the American Rescue Plan Act

Published on: April 23, 2021

In January, President Biden passed the American Rescue Plan Act, an extensive bill aimed to alleviate the struggles of the country amid the pandemic. Alongside relief for many affected businesses, the act has also come with a hefty amount of funding as well as new compliance requirements.

Among the funding, worth noting is the allocation of $100 million for each state for projects that “carry out critical capital projects directly enabling work, education and health monitoring, including remote options,” in response to COVID, providing more opportunities for construction projects in the future. There are several other areas of funding that could also benefit construction companies throughout the bill, such as funding for buildings for schools, health facilities, COVID research centers, and more.

Despite some of these upsides, the most significant of these new provisions are the compliance requirements – including the extension of the valuable employee retention credit (ERC) and the new 100% COBRA subsidy. The COBRA subsidy requires that employers pay premiums for COBRA-eligible employees through September 30, 2021. These premiums are reimbursable through tax credits.

Both provisions have strict rules, calculations, and documentation requirements that are sure to increase workloads on human resources departments. NYCA special consultant Grassi Advisors & Accountants’ human resources consultants and tax advisors, however, are here to help employers remain compliant while maximizing tax benefits. Grassi has made vital information on navigating these requirements available through its website. To learn more, contact your Grassi advisor or Jeff Agranoff, HR Consulting Principal.