Consolidated Appropriations Act, 2021: An Analysis


Summary

This practice note discusses the Consolidation Appropriations Act, 2021, Public Law 116–260 (the “Act”), passed by the House and Senate on December 21, 2020 and signed by the President on December 27, 2020. The Act pairs a roughly $900 billion novel coronavirus relief bill with a $1.4 trillion omnibus appropriations package to fund the government through September 30, 2021, the end of the fiscal year. The Act provides taxpayers necessary monetary relief from the novel coronavirus pandemic; extends expiring tax provisions and health extenders; includes a deduction for corporate meals; and prohibits surprise medical bills. The Act also clarifies that forgiven loans are not included in taxable income. The Act also includes new Internal Revenue Code (I.R.C.) sections tied to health care, referred to as the “No Surprises Act.” These provisions restrict plans and insurers from charging health care plan holders out-of-network rates for certain services.