School District Eligibility for the FFCRA Tax Credit
We have received many inquiries about The Families First Coronavirus Response Act (the “FFCRA”) tax credit for COVID-related paid leave and whether they are applicable to school districts. The FFCRA provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for part of the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.
Unfortunately, the answer is no, this tax credit does not apply to federal government, the government of any state (or political subdivision thereof), or any agency or instrumentality of any of the foregoing. School districts are included in the exclusion category. The official code is Sec. 7003(e)(4), PL 116-127, 3/18/2020 if you would like to research further.
Please feel free to contact us on 973-298-8500 if you have any further questions.