American Rescue Plan Vaccination Credits


The IRS and Treasury Department announced new details about the tax credits available to help small businesses through the American Rescue Plan (ARP). One of these credits include providing paid leave for employees receiving COVID-19 vaccinations. In the announcement, the IRS provided information about how employers may be eligible for the tax credits and how to claim the paid leave related to COVID-19 vaccinations.


According to the IRS, eligible employers are businesses and tax-exempt organizations with fewer than 500 employees. These employers can claim the tax credit for providing paid time off for each employee receiving the vaccine and any time needed to recover from the vaccine. ARP is allowing small and midsize employers to claim refundable tax credits that reimburse the cost of providing paid sick and family leave related to COVID-19, including vaccinations. Self-employed individuals are eligible for similar tax credits. These ARP tax credits will be available until September 30, 2021.


Learn how this may affect your 2020 taxes by contacting Lakeesha Browne, CPA.


“American Rescue Plan Tax Credits Available to Small Employers to Provide Paid Leave to Employees Receiving COVID-19 Vaccines; New Fact Sheet Outlines Details” IRS, 21 Apr. 2021, https://www.irs.gov/newsroom/american-rescue-plan-tax-credits-available-to-small-employers-to-provide-paid-leave-to-employees-receiving-covid-19-vaccines-new-fact-sheet-outlines-details Accessed 26 Apr. 2021.


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