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Thank you to Russ Sullivan and the team at Brownstein Hyatt Farber Schreck LLP for this report.

The House Ways and Means Committee released legislative text for its portion of the COVID-19 relief package both chambers have begun advancing through the budget reconciliation process. At $940 billion, the Ways and Means portion is the largest among all House committees responsible for crafting President Biden’s $1.9 trillion American Rescue Plan.

What’s in the Ways and Means Package?

The following provisions were included in the Ways and Means package:

Crisis Support for Unemployed Workers
  • Extends Pandemic Unemployment Assistance (PUA) through Aug. 29, 2021; increases total number of weeks of benefits from 50 to 74.
    Extends Federal Pandemic Unemployment Compensation (FPCU) through Aug. 29, 2021; increases FPUC from $300 to $400 for weeks after March 14 and before Aug. 29, 2021.
    Increases the number of weeks of benefits workers may receive in the Pandemic Emergency Unemployment Compensation (PEUC) program from 24 to 48; extends to Aug. 29, 2021, the time during which workers can receive PEUC if they have exhausted regular state UI benefits.
    Extends federal financing of Short-Time Compensation (STC) programs for states through Aug. 29, 2021.
Promoting Economic Security
  • Provides another round of Economic Impact Payments of up to $1,400.
  • Makes the Child Tax Credit fully refundable and increases the amount to $3,000 per child ($3,600 for children under 6); increases qualifying age by one year for 2021.
  • Reduces the minimum age to claim the childless Earned Income Tax Credit from 25 to 19 for 2021; eliminates the upper age limit; increases credit percentage and phaseout percentage from 7.65% to 15.3%; increases maximum credit amount in 2021 from $543 to $1,502.
  • Makes the Child and Dependent Care Tax Credit fully refundable; increases maximum credit rate to 50%; increases phaseout threshold from $15,000 to $125,000.
  • Increases the amount of wages for which an employer may claim the paid family credit in a year from $10,000 to $12,000 per employee and the number of days an individual may claim the credit from 50 days to 60 days. Starting on March 31, 2021, the credit is refundable against the hospital insurance tax.
  • Extends the Employee Retention Tax Credit through Dec. 31, 2021; structures the credit after June 30, 2021, as a refundable payroll tax credit against hospital insurance tax.
  • Repeals a provision that effective Jan. 1, 2021, would have permitted U.S. affiliated companies to allocate interest expense on a worldwide basis. This provision will raise billions in tax revenue from multinational corporations.
Stay safe and healthy,
Pat Soldano
President; Policy and Taxation Group
[email protected]
712 H Street NE Suite 1091
Washington DC 20002
About Policy and Taxation Group
Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.
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