More about the American Rescue Plan:
Below are select parts of the plan that impact the performing arts.
Paycheck Protection Program: An additional $7.25 billion will be added to the PPP resources, and eligibility changes will allow nonprofits with no more than 500 employees at each location to be eligible for forgivable loans.
National Endowment for the Arts COVID-19 Relief: The NEA will receive an additional $135 million in dedicated funding, with 40% allocated to states and regions and the remainder supporting direct grants to organizations “that support organizations’ programming and general operating expenses to cover up to 100 percent of the costs of the programs which the grants support, to prevent, prepare for, respond to, and recover from the coronavirus.” New dedicated COVID-19 relief funding has also been included for the National Endowment for the Humanities and the Institute of Museum and Library Services.
Employee Retention Tax Credit: The refundable payroll tax credits that are currently available in the first two quarters of 2021 will be extended through the remainder of the calendar year.
Emergency Funding for State, Local, Territorial, and Tribal Support: The bill provides $350 billion for state, local, territorial, and tribal support to address COVID-related revenue losses.
Families First Paid Leave and Credits: Paid sick and family leave provisions are expanded and refundable payroll tax credits extended through September 30, 2021.
Pandemic Unemployment Benefits: Pandemic Unemployment benefits, including the $100 supplement for those with a mix of 1099 and W-2 earnings, are extended through September 6, 2021. Pandemic Unemployment Compensation will be available at $300 per week, through September 6, 2021. The first $10,200 of unemployment insurance benefits will be non-taxable in 2021 for households with an adjusted gross income under $150,000.
Relief for Nonprofits Self-Insuring Unemployment Benefits: Some nonprofits self-insure unemployment benefits rather than pay state unemployment taxes. The federal government covers 50% of nonprofit liability under the CARES Act, and this relief was extended through March 14, 2021 in the December relief package. This bill continues the 50% coverage through March 31, and then starting April 1 federal relief will cover 75% of nonprofit liability, available through September 6, 2021.
Thank you to our partners Heather Noonan and Najean Lee at the League of American Orchestras for their apt summary of the above information.