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IRS releases fact sheet detailing tax credit provisions under American Rescue Plan


Small businesses can receive federal tax credits for providing paid leave to their employees to receive COVID-19 vaccinations. On Wednesday the Internal Revenue Service released a new fact sheet with further details about the tax credits available to eligible employers under the $1.9 trillion American Rescue Plan. The tax credits are available to eligible employers that pay sick and family leave for leave from April 1 through Sept. 30 of this year. The tax credits, which are refundable, reduce the employer’s share of Medicare tax or, if higher than the tax amount owed, can generate a refunded credit. They are applicable for paid leave provided by employers, including leave taken by employees to receive or recover from COVID-19 vaccinations. Self-employed individuals are eligible for similar tax credits.

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