CPAmerica Special Report: Consolidated Appropriations Act 2021

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The following summary highlights key provisions of the Consolidated Appropriations Act of 2021 that are most relevant to insurance entities, captives, and government organizations. Enacted in late December 2020, the Act combines a $900 billion COVID-19 relief package with a $1.4 trillion omnibus spending bill, creating extensive tax, funding, and compliance implications for calendar year 2020 and beyond.

For finance leaders, this legislation affects Paycheck Protection Program (PPP) forgiveness and deductibility rules, employee retention credits, health and welfare provisions, and a variety of industry-specific relief measures. It also introduces new reporting requirements and extends or modifies several expiring tax incentives. Understanding the detailed provisions of the Consolidated Appropriations Act of 2021 is essential for accurate year-end reporting, statutory and GAAP compliance, and proactive tax planning.

Controllers, CFOs, and other financial executives should evaluate how these changes interact with their existing relief claims, reserve estimates, and budgeting assumptions to ensure their financial statements remain timely, accurate, and well-supported.