|DATE:||April 23, 2021|
|SUBJECT:||FDPIR, TEFAP, and CSFP Income Exclusions under the American Rescue Plan Act of 2021|
Special Nutrition Programs
MPRO, MWRO, NERO, SERO,
SWRO, and WRO
|Food Distribution Directors
All FDPIR, TEFAP or CSFP Indian Tribal Organizations (ITOs) and State Agencies
On March 11, 2021, President Joseph R. Biden signed into law the American Rescue Plan Act of 2021 (PL 117-2). The Act included recovery rebates for individuals and child tax credits for qualifying households. Below is a summary of each provision and how to apply the income for the purposes of determining eligibility for the Food Distribution Program on Indian Reservations (FDPIR), The Emergency Food Assistance Program (TEFAP) or the Commodity Supplemental Food Program (CSFP).
Section 9601 – 2021 Recovery Rebates to Individuals
This provision further amends the Internal Revenue Code to authorize additional $1,400 rebate payments to eligible individuals, including children, similar to those authorized under the CARES Act Section 2201 and the Consolidated Appropriations Act Section 272 and 273. Pursuant to 26 USC 6409, these rebates are excluded from consideration as household income for the purposes of determining FDPIR, TEFAP or CSFP eligibility.
Section 9611 – Child Tax Credit Improvements for 2021
Section 9611(a) makes the Child Tax Credit fully refundable so that it is available in full to children in families with low or no earnings, increases the maximum credit to $3,000 per child or $3,600 for children under the age of six, and extends the credit to 17-year-olds. These changes only apply to calendar year 2021. Section 9611(b) allows the Child Tax Credit to be provided in advance monthly payments. Pursuant to 26 USC 6409, the Child Tax Credit, whether received as an annual credit or in the form of advance payments, is excluded from consideration as household income for the purposes of determining FDPIR, TEFAP or CSFP eligibility.
FNS regional offices should ensure that Indian Tribal Organizations (ITOs) and state agencies that administer any of these programs are apprised of this exclusion. ITOs or state agencies with questions regarding this income exclusion should contact their respective regional office representative.
Food Distribution Division