Economic Recovery Act of 2001

Economic Recovery Act of 2001 - Amends the Internal Revenue Code to allow an additional first year 30 percent depreciation allowance for property which has a recovery period of 20 years or less, is water utility property, or computer software and which was acquired after September 10, 2001, and before September 11, 2004, and is placed in service before January 1, 2005.

Provides for a supplemental rebate for individuals who, before October 16, 2001, filed tax returns for 2000.

Provides for a program of temporary emergency unemployment compensation.

Directs the Secretary of Labor to establish an emergency health coverage assistance program to provide a limited period of health insurance premium assistance for certain qualified individuals for Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage.

Allows a State to elect to provide temporary Medicaid coverage for certain uninsured individuals: (1) eligible for unemployment benefits; (2) not eligible for COBRA continuation coverage; and (3) with assets and resources below certain levels.

Provides for a revenue offset by increasing the 35 percent highest marginal tax rate to 37.6 percent (effective in 2006).

Amends the Workforce Investment Act of 1998 to provide additional funding for national emergency grants.