Section 501, Division N, of the Consolidated Appropriations Act, 2021, enacted December 27, 2020, allows States and political subdivisions, U.S. territories, Indian Tribes, and the Department of Hawaiian Home Lands (“Distributing Entity”) to use certain funds allocated by the Department of the Treasury to provide financial assistance to households to pay rent, utilities, home energy expenses, and other related expenses. Section 3201 of the American Rescue Plan Act of 2021, enacted March 11, 2021, appropriates additional funds for States, political subdivisions, and U.S. territories to provide financial assistance to households to pay rent, utilities, home energy expenses, and other related expenses. Payments under either provision are referred to as “Emergency Rental Assistance” in the following questions and answers. Q1. I am a renter who received Emergency Rental Assistance payments from a Distributing Entity for use in paying my rent. Are these payments includible in my gross income? (updated May 18, 2021) A1. No. Emergency Rental Assistance payments made to eligible households are not considered income to members of the household. Q2. I am a renter who received Emergency Rental Assistance payments from a Distributing Entity for use in paying my utilities or home energy expenses. Are these payments includible in my gross income? (updated May 18, 2021) A2. No. Emergency Rental Assistance payments, including payments for utilities or home energy expenses, made to eligible households are not considered income to members of the household. Q3. I am a renter who received Emergency Rental Assistance from a Distributing Entity for use in paying my rent, utilities, and/or home energy expenses, but the Distributing Entity made the payments directly to my landlord and/or my utility companies on my behalf. Are these payments includible in my gross income? (updated May 18, 2021) A3. No. Emergency Rental Assistance payments made on behalf of an eligible household are not considered income to members of the household. Q4. I am a landlord and I have a tenant who qualifies for Emergency Rental Assistance. A Distributing Entity sent me a rental payment on my tenant’s behalf under an Emergency Rental Assistance program. Is this payment includible in my gross income? (updated May 18, 2021) A4. Yes. Emergency Rental Assistance is intended to help eligible households that require financial assistance to pay for rent, utilities, home energy expenses, and other related expenses, and the payments are excluded from income only for those households. Rental payments you receive, whether from your tenant or from a Distributing Entity on your tenant’s behalf through an Emergency Rental Assistance program, are includible in your gross income. Q5. I run a utility company that has a customer who qualifies for Emergency Rental Assistance. A Distributing Entity sent my company a utility payment on my customer’s behalf under an Emergency Rental Assistance program. Is this payment includible in my company’s gross income? (updated May 18, 2021) A5. Yes. Emergency Rental Assistance is intended to help eligible households that require financial assistance to pay for rent, utilities, home energy expenses, and other related expenses, and the payments are excluded from income only for those households. Utility payments your company receives, whether from a customer or from a Distributing Entity on the customer’s behalf through an Emergency Rental Assistance program, are includible in your company’s gross income.
