JCT Estimates HEROES Act Tax Relief Would Cost $922.5 Billion

The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act (H.R. 6800), which would provide COVID-19 tax relief to individuals and businesses, would cost $922.5 billion from 2020 to 2030, according to a May 28 report (JCX-16-20) from the Joint Committee on Taxation that expanded on a previous estimate of the bill.

The major tax relief provisions in the bill, which the House passed May 15, would decrease revenue by $762.4 billion over 10 years, the report said. Among the costliest of those provisions is an additional round of recovery rebates for individuals, with dependents included this time, which would cost $412.5 billion over the same period.

Improvements to the employee retention credit would cost $163.6 billion, while the limitations on net operating losses would cost $254.1 billion, the JCT estimated.

Private health insurance provisions, which would allow furloughed employees to remain covered, would cost $97.7 billion over 10 years.

The report said retirement provisions such as an extension of amortization for single employer plans and a waiver of required minimum distribution rules for 2019 would cost $47.7 billion from 2020 to 2030.