President Joe Biden signed the American Rescue Plan, a $1.9 trillion coronavirus relief package, into law on Thursday, March 11.
Key provisions, as reported by NAHB, include:
- Direct payments: Individuals earning up to $75,000 and couples earning up to $150,000 would receive the full direct payments of $1,400 per person. Individuals will also receive an additional $1,400 payment for each dependent claimed on their tax returns. Individuals who earn more than $80,000 annually or couples earning more than $160,000 will not receive direct payments.
- Unemployment benefits: Federal unemployment insurance payments will remain at $300 per week. The benefits will extend through Sept. 6. The Senate's bill makes the first $10,200 in unemployment payments nontaxable for households with incomes under $150,000.
- Paycheck Protection Program: The bill includes $7.25 billion in new money for the loan program and would allow more nonprofits to apply. An additional $15 billion is allocated for the Economic Injury Disaster Loan advance program.
- Paid medical and sick leave credits: Employers offering their employees COVID-related paid medical and sick leave will be eligible for an expanded tax credi through Sept. 30.
- Employee retention tax credit: Eligible employers will be able to claim this credit through the end of 2021.
- Child tax credit expansion: The child tax credit will be increased to $3,000 per eligible child, or $3,600 for children under the age of six.
- State and local pandemic relief: The bill allows for $350 billion in state and local pandemic relief, which is intended to enable state and local governments to avoid layoffs of police, teachers and firefighters, and discourage local jurisdictions from increasing impact fees and other construction fees that harm housing affordability.
Biden delivered a speech hours after signing the bill, in which he projected all American adults will be eligible to get a vaccine by May 1 and where he targeted July 4 as a goal to "not only mark our independence as a nation, but mark our independence from this virus." He also projected all American adults will be eligible to get a vaccine by May 1.
Chuck Fowke, chairman of the National Association of Home Builders, issued the following statement in response to the bill's passage:
“NAHB commends Congress for passing much-needed stimulus legislation to get the economy back on track. The American Rescue Plan includes additional funds for small businesses, rental assistance, school reopenings, nationwide coronavirus vaccine delivery, and aid to state and local governments. These provisions will help provide positive momentum for the housing industry and keep the economy moving forward.”
