Explanation and Analysis After months of discussion and review, the American Rescue Plan Act of 2021 (Act) was signed into law by President Biden on March 11, 2021. In general, its provisions—which encompass more than 600 pages—become effective for 2021 with varying implementation dates. This Act builds on some of the earlier legislation. A note should be made that some provisions are permanent, while others will expire.
The following analysis seeks to capture the most salient provisions of the Act that may affect the financial planning and interests of clients. Many provisions make amendments to current Internal Revenue Code sections, while others create new code sections. It must be emphasized that the implementation of these provisions will be subject to further Treasury Regulations, which will afford greater clarity to many of the Act’s provisions.