WASHINGTON, July 29 (Reuters) - President Joe Biden is calling for state, local and U.S. territorial governments to provide $100 payments for every newly vaccinated American to boost COVID-19 inoculation rates, the U.S. Treasury Department said on Thursday.

The Treasury said in a statement that such incentives are an allowable use of funds from the $350 billion in aid granted to state, local, territorial and tribal governments under the American Rescue Plan Act. The department added that it would provide technical assistance in using these funds to support increased vaccinations.

The Treasury also said it was expanding a tax credit that employers could claim for wages paid to employees to give them paid time off to get vaccinated or to assist family members and certain other individuals with COVID-19 vaccinations.

"Today, the President is calling on state, territorial, and local governments to provide $100 payments for every newly vaccinated American, as an extra incentive to boost vaccination rates, protect communities, and save lives," Treasury said in a statement.

Earlier on Thursday, New York City Mayor Bill de Blasio announced that anyone getting their first COVID-19 vaccine shot at a city-run site would receive a $100 payment. (Reporting by David Lawder; Editing by Leslie Adler and Marguerita Choy)